I 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?
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.
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.
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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