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Online Direct Lenders: Do They Carry Total Responsibility?

are payday loans online direct lenders worthy of the reports?

There is always a never-ending supply of reasons that you should not apply with online direct lenders. There are facts about predatory payday loan lenders who have fraudulent practices. Not to mention they are also suspected of alleged bad practices, high interest, and heartfelt stories of applicants. People’s finances fell apart from the payoff demand from using short-term loans. Direct payday lenders are constantly targeted for taking advantage of financially vulnerable customers. Is targeting these companies done fairly?

Do Online Direct Lenders Fall together As Being One-in-the-same?

Have you ever heard of a person buying meat from a small market and found it to be spoiled? Did the butcher realize the meat had gone bad? Did you notice the sell-by date? It probably is the fault of someone in the market. But does this problem make all small meat markets sellers of bad meat? It seems unreasonable to label the industry as bad when there are decent stores out there. They take pride in their company’s policies.

In the money industry, there are many bad apples to be found in the bunch.¬† At the same time, there are still those payday loan direct lenders who do not take advantage of a customer’s situation. They carry good practices and want to service their customers.

What Happens When A Borrower Doesn’t Pay?

A recent article came from the Center for American Progress. It portrays the whole payday loan industry as predators. The article continues to claim that short-term loans have damaged the economy. Likewise, they say that individual households have negative effects of failing to pay back the loan. They depict the payday loans as forcing people to sell off assets to afford the debt. If borrowers don’t pay, the loans are usually sold to collections agencies. Unfortunately, bank accounts are at risk since most borrowers do not have a savings account.

Not All Payday Loan Companies Are The Same

There was no mention of the success stories. There were no PEW studies that polled short-term loan customers about their experience. Realistically most of those customers would reuse it again. What about the lending companies who have been in business for years without government lawsuits? Also, some companies genuinely want to help a customer out of a financial bind. They work with the borrower so that they can pay off their small short-term debt. As a result, customers carry on with their daily life, relieved of the temporary financial stress.

Consider the Borrower’s Intention

There is no argument when defining these short-term loans as expensive. Many borrowing opportunists apply for a quick loan knowing that their situation will not afford the payoff. They don’t think twice or wonder how they will pay back. By the same token, they know they need emergency cash and start filling out an application. Shall we assume that all applicants are out to ‘dupe lending companies? Are the majority of users applying with direct lenders because their finances are in great shape and want to get immediate cash?

It is safe to say that the applicants are already in some financial mess. Many lenders refuse to work with them, yet they continue to search for a company that will. When they do find one, is there any time taken to find out more information about the company? These are the cases where you tend to see abusive practices toward borrowers. Responsible lenders already refused their services. When a good direct lender says ‘no,’ is that bad practice?

Where Does The Responsibility Lie?

It is not fair to the direct lender to be singled out as the cause for people’s financial troubles. Most short-term loans are the result of financial difficulties and decreased creditworthiness. Credit card companies, banks, and credit unions all have their bad apples. People are losing their homes due to poor practices from mortgage companies. Credit card companies admit to preying on lower-income users to charge higher interest rates. Every applicant must make right decisions based on their financial situation. Most importantly, they should never forget the final cost of using any third-party money.

If you are thinking about using a direct lender, look at the reality of your financial situation before you apply. Seek out responsible payday loans direct lenders. If you are rejected, say “thank you” and find a different money solution.

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