before we get too involved let me cover the 3 simple rules to using payday loans safely.
- Never borrow more than you can pay back in full on the first due date
- Never roll over or extend a payday loan
- Always read all of the fine print and understand your terms
If you follow those three rules, you can safely use a payday loan and not get caught in what we in the industry call the payday loan trap.
Now, on to the news!
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The Selma Alabama city council has voted to extend the ban on payday loan storefronts for another 6 months.
Councilman Michael Johnson is heading research on possibly also requiring a certain distance between storefronts if they decide to approve them.
In Kansas City MO the Missouri Public Service Commission is recommending no ban be placed on payday loan lenders who are allowing payment for utility bills.Staff reports there is no proof that anyone has or will be harmed by allowing these stores to collect a persons’ utility bill.
The utility commission reports 2.6 percent of its customers pay their bills at pay stations like this, and so far all is going well.
Backers of the ban will still continue efforts to get this practice eliminated. They claim that easy access to borrowing money and the ability to borrow money to pay their utility bills on the spot creates a scenario of the customer getting caught in a payday loan trap.
In Iowa City, Iowa the Consumer Financial Protection Bureau, which took over regulation payday loans in 2012, is ramping up efforts of enforcement with violators in this industry.
The commission was formed to combat illegal interest and collection practices in Iowa and has even required several payday lenders to repay millions in illegal funds.
They are working on three new rules now and more will be discussed at a later date, as it takes 3 months for any proposed changes to get through the system.
The are hoping to have a complete set of new rules by 2015.
In Albany New York the New York Attorney general is doing it’s best to combat collection companies from filing claims on defaulted payday loans.
Payday loans are illegal in New York and collections should also be illegal.
The attorney General has reached a settlement with one collection company, Forster & Garbus, to not try to collect on any payday loans that have been turned in for collection.
Payday loans seem to be in the news more and more lately and we here at Help Payday Loan Debt will be posting a weekly summary every Monday of the previous weeks’ news.
Thanks for visiting our site and always be careful when dealing with payday loans. Follow our 3 basic rules and if you do get into trouble, please feel free to contact us for help in resolving any issues you may have with payday loan debt.
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