The online payday loan business might be getting smaller in the state of California once lenders who have no license to loan in the state are recognized. It has come to the knowledge of state officials that there are many who are not following the state guidelines.
In many states, there has been legislation passed which governs the way payday lenders conduct business. In the state of California, all online lenders must obtain a California license in order to process loans. Since 2007, the payday loan industry has been $2.9 billion strong in California. About 11 million of that were loans towards 1.6 million Californians. Much of the business is due to repeat customers.
Repeat customers keep payday loans thriving.
What is it about customers who revisit the online payday loan industry? There is so much bad publicity for the company what keeps them coming back?
A working relationship between the customer and lender.
There are people who believe that payday loans are a great option when they fall short on cash before a paycheck. These people are able to pay their loans back without falling further into debt. When the situation arises again, the lender has much of the information already on file and the application process gets that much easier. As long as you are communicative and make payments when you say you will, payday loan lender relationships are good.
Besides having to obtain a license to process loans online in California, a lender may only provide one active loan per customer. A resident of the state may not have two open loans with the same lender. The loan is capped off at $300, which means that if you need more money, you will have to find an additional source. The interest rate is also capped at 15%, for every $100 in loans, you will be paying $15 in fees come the payoff date. Military personnel are handled differently as there are separate government laws protecting them.
Doing business with a company who is not following state guidelines will not help the borrower if something goes wrong. Many predatory lenders will prey on people who need additional money above the capped amounts. The downside to this is if there is no cap to the loan amount, it is pretty easy to assume there will be no cap to the loan interest rate as well.
As difficult as some may find it, it truly is in the best interest to keep lenders accountable of their lending practices. Know what regulations are required when you go searching for an online payday loan on the Internet. Don’t take the first company which pops up. You will want to do your research to find a trusting lender who you can build a relationship with; a business which is professional, courteous and follows best practices. Do your homework no in order to prevent hardships later on.
Spotya! Online Payday Loans is one of those good lenders who will take the time to build a relationship with the customers. Its’ the professional and personal touch which makes Spotya.com a lender worth looking for; accompany which follows all regulations plus has some of their own in order to be responsible within the lending community.
