Help Before Defaulting On A Payday Loan?

By Shawn Lee Martin


defaulting on a payday loanI have heard of help after defaulting on a payday loan, but not before.

That was until I read an article in the news today stating a push is underway for federal involvement in regulating payday loans.

Until this came along most states were in charge of their own ways of regulating these companies.

Is this twist for the good, and should we let something that is right now each states business become under the blanket of a one size fits all federal law?

Lets explore this topic.

To understand more about these companies lets take a look at What a payday  loan really is.

Having trouble with defaulted payday loans?

Click here to see how we can help!

New Regulation Proposed


The Consumer Financial Protection Bureau has proposed federal control over payday loan companies to bring them more in line with the banking industry when it comes to granting these loans.

The bureau wants the loan companies to start verifying the income of their borrowers before granting or extending payday loans and auto title loans.

This is backed by President Obama and he addressed this issue at a recent speech. “This idea is pretty common sense.If If you lend out money, you should first make sure that the borrower can afford to pay it back.”

If only it were this easy.

Horror Stories


The people who have ended up getting caught in the payday loan traps understand why this rule is so important, with one customer borrowing $255.00 and in the end loosing her bank account, seeing her account blossom to over $8000.00 and the start of legal action.

Others have lost their homes and cars, filed bankruptcy and some have even resorted to suicide.

A real problem in the eyes of many.

One group does not look at it that way, and not only do they defend the payday loan industry they feel it is the right of the people to be able to use these loans and without them this class of people would not be able to borrow any money at all.

Chief executive of The Community Financial Services Association Of America  Dennis Shaul says if this becomes law many people with no credit will be unable to borrow money, and at the tune of 200,000,00 payday loans granted last year this could be a huge hit on this area of our community.

The following video addresses the efforts the CFSA is doing to help payday loan borrowers who get into trouble.

Summary


While this new push makes all the sense in the world to us, the reality is it will probably turn out like all the other national efforts to regulate these companies.

It will loose traction and eventually disappear or be defeated as it will be up against huge amounts of lobby dollars from the payday loan companies themselves and they will be buying votes full time on this one.

No matter what the outcome we here at Help With payday Loan Debt will continue to help people who get caught in the payday loan trap get out from under these loans.

If you are waiting for help before defaulting on a payday loan your best action is to not take any action at all and steer clear of these loans.
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Having trouble with defaulted payday loans?

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4 thoughts on “Help Before Defaulting On A Payday Loan?”

  1. I am so glad to see the government start to do something about the pay day loans. I think they are a huge rip off. Who can pay back a loan at those rates? They are just preying on people that have no other choice. You are right. The lobbyist will probably slow it down. Thanks for the information. I am glad I never used one of these places!

    1. Hi, Liz!

      Thanks so much for stopping by!
      Yes, they may slow them down but these people are crafty and just move operations outside the USA.
      We will just have to keep informing people and helping them when they get trapped in payday loan debt!

      Shawn>>

  2. Very interesting article on Payday loans. Those things are crazy. I have managed to avoid them but they prey on the people living paycheck to paycheck. These people are already hurting then they charge a fee of up to 30%. I am glad there is more involvement from the Fed.
    Marc

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