States are learning how to fight payday loans

By Shawn Martin


Alabama State Seal
Alabama State Seal

State by state this country is slowly getting it right. States are learning how to fight payday loans with new laws, and it is about time.

Alabama is the latest state to call for a statewide database that will record all payday loan transactions and keep track of peoples activities.

The idea is to avoid giving people multiple payday loans at one time and keep track of those who do not pay them back in a timely manner.

California, Pennsylvania, and other areas are also requesting similar databases.

13 states already have their own databases and have put into action that make sure lenders qualify for a new loan without having an outstanding one already.

Veritec Solutions LLC, the company who designs and services the databases, also runs call centers to help people who are denied loans.

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Consumer Financial Protection Bureau

Since early last year, the federal Consumer Financial Protection Bureau has been supervising payday lenders, and they are a bit up in arms over these state wide databases being supplied by Veritec Solutions.

Seems this agency is considering issuing its own rules over payday lending, as these databases are costing too much money to maintain and that cost is getting passed down from the lenders to the borrowers.

Veritec Solutions charges a fee from the payday lenders to run this database, and this, in turn, is getting passed onto the customers.

I would think that a minor adjustment to the present laws, like requiring the lenders to eat the cost and make it illegal to pass the fees on, would solve that problem.

More good news!


Fifteen states now have banned payday loans altogether, and the list is growing. Many lawmakers are tired of all the predatory behavior displayed by these loan companies and are finally listening to the people and representing them accordingly.

We here at helppaydayloandebt.com have our own solution to help people with out of control payday loan debt.

View our solution here

Summary


While states are slowly coming around to putting and end to this kind of predatory lending, everyone must still keep their guard up.

It is virtually impossible to stop online payday loans, and they are designed to trap you from day one.The best payday loan is no payday loan, so at all costs avoid them like the plague.

If you are already caught in the payday loan trap, by all means give us a call at 1-877-280-5100 or fill out our form  for your free no-obligation quote on how we can help you get back on your feet.

Remember, the sooner you call, the sooner we can stop all the headaches these companies are causing you and get you some relief!

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