The payday loan online industry has a bad reputation. Why does it? Because there are lenders out there who do participate in abusive lending practices. It is one of those deals where it only takes a few bad apples to ruin the whole bunch. The bad apples can be weeded out and the state governments are doing their best to keep the bad lenders from practicing within their borders. Protecting residents from falling further into debt is their priority.
What is the bad about some payday loan online lenders?
- High interest rates are preventing borrowers from being able to pay off their debt. Many states have capped the interest rates in order to prevent high interest rates from being the cause. Borrowers can shop around to find lenders with low interest rates.
- There re-loan rate is very high, people who take out another loan to pay off a previous loan. Some states have outlawed this practice. Lenders will need to provide pay off options which will keep borrowers from sinking further into debt.
- Extended plans are not being supported as a sufficient payoff plan. Once again, some states will not allow this option for its residents. Look for a company with more options.
- A good portion of borrowers default on their loans bringing more hazard conditions to their finances. Proper collections practices must be withheld and any company who threatens or harasses must be reported.
- Store payday lenders, online payday loan lenders and now bank payday lenders can all harm the financial situation of the borrower. What is not included is that any credit card or private lender can also create harm to an individual if the money is not repaid. It is not a one sided responsibility.
- Payday lender stores have been accused of targeting certain demographics. That possibility is probably true for some, but it would not include banks or online payday lenders.
- Some payday lenders market their loans as the last hope for low-income families. For some it may be true, but there are other options out there for people. Contact local community organizations, churches, and emergency assistance programs. Payday loans do work for some individuals, but others will need to find a different approach to their financial problems.
Spotya! Payday Loan Online Lenders work diligently each day to not only be responsible lenders themselves, but make constant efforts to educate others with both responsible borrowing and budget planning. All state guidelines are used to set rates in each state which Spotya.com lends to. You will find that the rates set are some of the lowest found online. Competition is a big factor while caring for customers is important as well.
All payday loan online lenders are not the same. It is important to understand the practices of those companies who do not follow best lending practices so you can recognize them if you make contact with them. There are lenders who do not have to follow state guidelines, best practices, or proper debt procedures. These lenders are those located out of the country or run by Native American tribes. Bank and credit union payday lenders have options which payday lenders do not have. Some lenders are scammers looking for easy access into your bank account. The borrower needs to be aware, full of questions to be answered, and not afraid to report a company who has violated their rights.