The latest payday loan news to come out is the new payday loan laws that will be taking effect involving how payday lenders grant payday loans.
While this is a step in the right direction it is still weak on protecting borrowers.
Let’s take a look at this new law and see what it is trying to accomplish!
Lacking In Protection
The new law is an attempt to protect borrowers from getting caught in the payday loan trap.
While many experts say it is not enough to really help the borrowers and the fact that it will not go into effect for two years really makes this change pretty much a non-issue for the immediate future.
The payday loan industry makes huge amounts of money off of these loans and while they claim there is a demand for this type of credit and they are just supplying that demand, most experts agree that the rules need to be changed to protect the borrowers from themselves.
The way the laws are now most anyone who has a job and a checking account and make at least $800.00 a month can take out a payday loan.
As long as this borrower pays back their loan in full on their first due date all is good.
While the borrower will have paid a huge amount of interest for their loan it will be done and over with.
This kind of situation rarely happens as things come up.
All of a sudden the borrower can not make the one-time payment and ends up extending their loan or even taking out another one to cover the payment of the first loan.
Before they know what is happening they are in serious financial trouble.
This change in the law was meant to avoid the above scenario but it lacks in that it will not even be enforceable for two years due to the power of the lobbyists for the payday loan industry, who managed to get this delay put into this law.
The New Laws
We thought it best to go ahead and share with you the actual release of these changes.
You can check out the new laws by visiting the Consumer Finance PDF.
This PDF explains all the changes and the intent of those changes and when they take effect.
It is our hope that this helps you understand the newest payday loan news and what to expect or not to expect if you should decide to take out one of these loans.
If you do decide to use these services we would like to share with you our advice on How To Use Payday Loans
This article will explain the only safe way to use payday loans and everything to look out for when dealing with these companies.
We would like to keep you up to date on any and all news that involves payday loans so be sure to bookmark this site for future reference!
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