Payday Loan Debt Regulations – Some people wonder what a payday loan is. For those that already know what they are, they usually try to run and steer clear of them at all cost. Payday loans are short-term cash loans that are advanced to consumers based on a borrower’s ability to pay back the loan according to their weekly or monthly income. When handled properly, payday loans are beneficial to those who have the intention and the ability to pay them back before the roll over period. For individuals who are not able to pay the loans in full, this type of loan can be detrimental to a consumer’s financial standing and possibly their credit. The finance charges alone are enough to get a consumer in debt and keep them in debt for a much longer period than anticipated. The biggest challenge with payday loans is the cost of money. For individuals who lack good credit, payday loans could be a short-term solution. The key phrase here is short-term. Payday loans have a negative stigma for targeting individuals in low-income areas and individuals who lack financial knowledge. With all of the negative stigma surrounding payday loans, why would an individual or a group of individuals lobby to remove or lessen regulations in an industry that is already shrouded in negativity?
When individuals find themselves in what seems to be the never-ending cycle of a payday loan, they’re often faced with the decision of whether to continue to try and pay the loans off or settle payday loans with the loan company. Payday loan debt relief is an option that many consumers entertain due to their inability to pay the loan back in full. Because consumers become inundated with finance charges and the inability to pay, they usually stop paying payday loans all together.
Most recently, there have been discussions among payday lenders to raise capital for the Trump administration’s re-election campaign. The main goal of this effort is to seek relief from federal regulations for the payday loan industry. For many consumers, these antics could mean open season on low-income individuals, people with little to no financial education and minority groups.
Payday loan regulations
Currently there are federal regulations in place for payday loan companies. While payday lending is legal in 27 States, federal regulations still limit what payday lenders can do, how much they can charge for interest rates and their collection methods. The Consumer Financial Protection Bureau has implemented rules that prohibit payday loan lenders from collecting payments from consumers bank accounts in a way that would incur excessive fees.
As mentioned earlier, payday loans can provide a huge financial burden for consumers. When a borrower becomes inundated with fees and the inability to pay back the loans according to the terms, they seek to settle payday loans with the lenders and when that fails they seek the assistance of payday loan debt relief companies. The last resort for many consumers is they stop paying payday loans all together. These types of scenarios are unfavorable for the consumers and the payday lenders. With this unfavorable scenario being the play of the day, why do payday lenders continue in this never-ending cycle of collecting money from individuals who have very little to start with?
The Trump Factor
The Consumer Financial Protection Bureau was established to protect consumers from predatory lending practices. The question of the day is, why is President Trump rolling back regulations to protect the payday lending industry? Do payday lenders really need protecting or is there room for more regulation to keep this industry in check? The Obama era regulations we’re actually showing improvements, as many payday lending companies begin implementing these new rules prior to them taking effect.
Payday loan debt relief companies are waiting on the sidelines ready to help individuals stop payday loan debt and assist individuals who have made the decision to settle their loans. The decision to stop payday loan debt is often a decision that many consumers don’t take lightly. After all, when it comes to a consumer’s credit, the impact lasts for years.
Letting the dog off the leash
The left side or the right side, pick one
The decision to settle payday loans can be a difficult decision to make for some consumers and an easy one to make for other consumers. Consumers who find themselves in positions to have to apply for a payday loan often do so with a purpose. Whether a consumer is falling behind on their bills or has an unexpected emergency, utilizing a payday loan is the only option for many borrowers. With the cost of living outpacing pay raises, consumers find it necessary to utilize short-term loans to help solve their problems. What they don’t count on is our government’s political system implementing regulations that are in favor of predatory lending practices. If a consumer cannot find protection from the government, then who can they find protection with? The only option left for consumers is to seek companies that help settle payday loans. An attempt to settle payday loans would be a great scenario for a consumer. For payday lenders, however, companies that settle payday loans could prove to be a thorn in the side of lending companies looking to capitalize on less informed consumers. With that said, this begs the question would there be regulations to prohibit payday loan debt relief companies from doing their jobs? After all, for every regulation that supports one side of the argument, there is another regulation that can support suppressing the other side of the argument.
There are many debt relief companies that are willing to help consumers settle payday loans. These companies, despite any changes in regulation, are aware of the ever-changing climate in the payday lending industry. Payday Loan Consolidation Company is a payday loan debt relief company that can help you settle your debt with any payday lender. They offer programs that can help you reduce your monthly payments, consolidate multiple payday loans and lower your interest rate. They specialize in helping you reduce or even eliminate late and over-the-limit fees. They are a trusted company in the industry and will Implement a plan that provides you with the financial relief that you are seeking. Since bankruptcy is not the most favorable option, Payday Loan Consolidations can assist you in exploring other options that would be more favorable and help to reduce the impact on your credit standing. They analyze your current budget and Implement a plan best suited for your needs. Give them a call today. They have professional agents standing by waiting to help you relieve your payday loan problems once and for all.