Where is the bad in online payday loan companies? The answer would depend on who you are asking. Look to a government official, a debtor in need of quick cash, or a person at their end of their financial rope and you your answers may still vary. There are rooters and naysayers among them all.
Those in favor of payday loan companies
Believe it or not, there are people who fight for their right to use a payday lending company when money matters get tight. The idea that there is somewhere to turn when other providers shut the door on money options is often seen as a relief. The price one pays for the actual loan is worth the cost of keeping money problems from turning into disasters.
Others look at it simply as a freedom of choice. America’s foundation was set on fighting for liberty. Wanting available options keep many politicians fighting for the payday loan online companies. The same reason is also given by many consumers who may not have ever used a short-term loan in the past. At least they know it is there just in case.
People who use the loans successfully want them to remain. These folks understand that these loans come with a high price tag. Each time they obtain a loan, the extra costs are paid. For those who are credit challenged, it is a price they are willing to pay in order to get quick financial relief.
The fight against payday loan companies
Some borrowers fail at repaying their short-term loans. Others take months and months, even years to repay the few hundred dollar bill. When the amount of interest paid each month far exceeds the initial loan cost, the payday direct lenders are accused of taking advantage of financially vulnerable people.
Some state lawmakers have been able to pass laws which regulate the loans in their state. There are some states which forbid the loans in general, while others have capped rates, loan amounts and regulated terms of service. You would think that people who live in these states would follow their state laws. Many do, but most will find a way to get a loan despite the government’s intervention. Is it hurtful to these folks as they find other lenders rather than working with one because it is their right to choose in the first place? This argument’s end is nowhere in sight.
There is no argument over the fact that there are too many fraudulent companies trying to take advantage of a borrower’s desperation for quick cash. Is their poor behavior a reason to ban all payday companies? Yes, the loans are expensive, but many are willing to pay the price in order to get quick financial relief when others turn them away. People who have never used the cerise are making judgments against while others like the idea that there is hope. Borrowers who have used the service and have struggled or failed with paying it off may agree or not. It definitely is a personal decision based on individual needs. Payday loan companies online may not be the best choice for all borrowers, but since our country was built on liberties, a choice is a choice.