payday loans online industry between those who want more government regulation, with some wanting to have the short-term loans abolished, while others believe more personal responsibility needs to grow in importance.
The conservative party has argued for the personal responsibility component to online payday loan as the liberal view takes on the government control to protect the economic classes from predatory lending tactics. Consumer advocates will agree and take on the fight of the democratic point of view. More government control will protect consumers from high interest rates, short-term loan fall outs and the locations of payday loan store locations. Taking it one step further, there are many consumer advocates who would prefer that these types of loans were abolished all together.
To counter the arguments of the horrors of payday loans online, the lenders and conservatives would like to take a closer look at the fine line which separates personal responsibility and government control. How much does the government control without discrediting the intelligence of the borrower? Just because the majority of borrowers are low income, does not mean that they do not understand the terms of the loan. Contracts are created with clients having every opportunity to ask questions and seek advice before signing. Do borrowers need someone holding their hand in order to make a financial decision? The lenders do have a vested interest in keeping their loan policies in order to make the company profitable. Of course they want to protect the revenue they make for the high risk loans, it is a business. The loans are a freedom of choice and the backers of the payday loans online industry have kept the option to obtain a short-term loan open to options for consumers.
There is a need for emergency financial solutions which have kept payday loans online helping people with small financial troubles. Negative reports talk louder than the positive stories.
What is positive about payday loans online?
They have helped many consumers get out of a money problem before it becomes big.
An option for money when most other financial doors have been closed.
No hassle loan application.
Bad credit is not an issue.
It is a choice. No one forces a borrower into opting for a payday loans online. Someone who is looking for a short-term loan has usually already suffered some credit damage and is looking for a new source to help them out. The loans are high risk that most financial institutions would never take. If the payday loans online were not available, where would the consumer turn in order to get the money? Many advocates for the industry are fearful that loan sharks would gain their business. Illegal lenders are completely unregulated with lending and collection practices. There are some payday loan companies who do not follow state regulations which cause alarm, but cannot be grouped with those who do follow best practices guidelines.
Negatives for abolishing payday loans online.
Increase of unregulated payday loan companies; off shore companies. Native American based companies, illegal loan sharks.
Jeopardizing the finances of the many who do achieve success with payday loans.
Limiting the options for borrowers who would struggle getting help elsewhere.
Education for financial matters as well as the risks involved with payday loans online will help lower the risks for both customer and lender. While the government has chosen to regulate the companies, there needs to be more emphasis placed on the client’s responsibility.
I am a Blogger, Web Content Writer, Teacher, Mom. A woman of many hats. As an elementary teacher, I had always encouraged my students to write more. I find myself falling back on my own teaching techniques to share what I know about building and rebuilding personal finances.