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Payday Lending Restrictions will harm Lower Income American Households

It is no secret that the mainstream media and some government watchdog groups seem to loathe the payday lending industry. If you believed everything that got reported on this industry, you might think that there is no reason for it to be in existence. However, that would fly in the face of the fact that millions (some say 10 to 12 million) of people every year rely on payday loans. The Consumer Financial Protection Bureau recently proposed some rules that they say will help to protect consumers from the potential pitfalls of payday loans. Opponents of payday lending have applauded these new rules, but the elephant in the room is the fact that the new rules may wind up hurting the very consumers that they were supposedly created to protect.Banks Are Offering Payday Loan Type Services

The CFPB has never come out and demanded that the payday lending industry go away completely. But the new rules are based on extensive underwriting for the loans; essentially forcing lenders to do extra leg work to make sure that consumers are able to pay back the loans that they take out. The additional checks and balances that payday lenders will have to go through in order to make loans will likely result in many of them being unable to afford to stay in business.

Some crafty investors are working on their own versions of payday loans to swoop in and snatch up their share of the growing number of people who demand short term, small dollar loans. Uber recently announced that it will allow its drivers to get payday advances of up to $1,000 against their paychecks. The money will be paid back directly from the drivers’ pay checks. And Uber is not the only company that is cooking up new ways to offer services that look a heck of a lot like traditional payday loans.

The CFPB has done what the government is known for doing from time to time. They have stepped in to put new regulations on an industry that is already undergoing massive transformations. And if the CFPB gets its way, the new rules will more than likely limit the options available to poor people. All the while similar financial services and products will become more available to middle class households. It is a reversal of fortunes that should never take place, and one that could have lasting negative impacts on lower income households for decades to come.

The CFPB has come right out and said that the new rules will raise costs for lenders and that they will ultimately lead to a reduction of total loan volume by more than 50 percent. So, the money that would have been lent to lower income consumers (higher risk borrowers) will more than likely end up in the wallets of people who have higher incomes (lower risk borrowers.) Anytime an aspect of lending is regulated the lenders will react by enacting new prices in their loan contracts. They have to account for the increased risk/cost somewhere, right?

They say that bad things tend to roll downhill. The poor in this country know this fact all too well. Unfortunately, it is usually the government who is causing the lack of fortunate financial circumstances that millions of people must contend with. The new rules being proposed by the CFPB are just another example of how a government agency can act on the “behalf” of a group of people and wind up making things even worse on that group of people in the process.

How to get a Quick $500 for a Casino Trip with your Buddies

Every once in a while you just have to get out with the buddies. And if you are serious about having a good time, you know there is nothing like heading out for a road trip to the casino. Whether you head out to Vegas or keep your trip more on the local side of things, you know that great times await when you and some of your best friends have a night/weekend of gambling and fun. The bad thing is, though, that you cannot head out the door for one of these trips without a little bit of cash in your pocket. Many guys find that they are flat broke when these types of trips are scheduled to take place, and often don’t know what to do.

Fear not! You don’t have to miss out on all the good times that are sure to happen when the next casino trip rolls around. We’ve put together some tips that will help you to get $500 or so for a great time with your crew…Casino

One option is to use a website or local reseller to sell off some of your seldom used belongings. Find that you don’t get to play golf all that much these days, and willing to part with that old set of clubs? You may find that a local sporting goods reseller in your area is willing to give you a bit of cash to take them off your hands. Have electronics or other stuff to sell? You might want to use eBay or even Craigslist to create a quick, 2 day sale.

The downside with these methods is that you will often only get pennies on the dollar from your initial purchase price. A reseller might only give you $20 or $30 for a set of clubs that you paid hundreds for, and online auctions can often not pan out as you might expect. Still, though, if you have a bunch of stuff you don’t mind getting rid of, and don’t mind taking less for them than they are worth, this is a valid way for those of you who need a quick $500 for a trip to the casino with your buddies. But you may have to sell of quite a bit of stuff in order to make that much money.

Another Method for a Quick $500 for a Casino Trip

If you don’t feel like conducting a fire sale on all of your best stuff in order to make the casino trip, you might want to consider getting a payday advance loan. There are a lot of people who deride these types of loans, but the fact of the matter is that these loans are often the best way to get quick cash for emergencies. And getting out there with your buddies for some gambling qualifies as an emergency in this case.

Payday lenders usually charge about $15 for every $100 you borrow. They get paid back two weeks after you get the loan. So if you’re short on cash because you’re between paydays at work, you get to pay the loan back once that next check is in the bank. So, you could potentially borrow $500 and pay back $575 in two weeks. These types of loans give you cash with a time buffer, so you can not worry about paying them back until you have your next check from work. For those seriously looking for how to get a quick $500 for a casino trip with buddies, the simple payday loan may be the easiest way to get it done.

Think about these options, and the next time you need cash in order to have a bit of fun with your friends, you at least now have a couple of options that may work out quite well for you.

Opposing Views Clash over the Legitimacy of Payday Loans

To say that viewpoints are polarized these days would be an understatement. On just about every subject imaginable – from pop music to politics – people have opinions. And often, the opinion that someone has on a topic puts them in direct opposition of the folks who don’t share that opinion. One only has to look at how Democrats and Republicans usually face off on various topics in order to understand how all of this works. Keeping in mind how people tend to cling to their opinion, and write off people who are on the opposite side of the fence makes it easy to understand why payday lending is such a hotly debated topic.

On one side you have consumer advocates and others who are opposed to payday lending. They believe that payday lenders charge too much for their services and that the lending companies play a part in trapping their customers in cycles of debt. On the other side, there are payday lenders, their customers and those who support this industry. The lenders are business owners that believe they offer valuable services to consumers that are underserved by traditional banks. The customers are people who need access to fast money, and who have turned to payday lenders for these services. And the supporters of this industry come from a wide range of backgrounds, with most of them sharing a strong belief in offering choice to consumers and the American entrepreneurial spirit.unsecured-loans-can-be-easily-obtained-through-payday-lenders-direct-6516

The Biggest Threat to Payday Lending

You can choose to be on either side; that’s one of the great things about this country. But there is one group that is the biggest advocate of eliminating payday lending completely – the Consumer Financial Protection Bureau (aka the CFPB.) This government group is in charge of protecting consumers from financial misdeeds and shady business practices. And while they certainly do that, the CFPB has been on a serious quest to rid the country of payday lending and other forms of short term loans that operate outside the realm of traditional banking. The CFPB is currently poised to unleash new, stricter regulations that many believe will ring the death knoll for the payday loans industry.

Surprising Support for the Payday Lending Industry

For a while, it seemed like only a handful of elected Republican officials had an interest in protecting the payday lending industry. However, in recent months key Democrat leaders have stepped up and joined in bipartisan steps to help delay/prevent the new CFPB regulations from taking effect. Many people believed that the payday lending industry was as good as done for until officials from both sides of the aisle began to talk common sense about the issue and started working together to formulate legislation that would work to stop the CFPB from enacting its new regulations. This is still a work in progress, but it demonstrates that even those who tend to lean toward liberal political affiliations can have a change of heart. As to where these bipartisan efforts will ultimately lead is something that everyone will have to keep an eye on in upcoming months.

The debate about payday loans will likely continue regardless of whether or not the CFPB is successful in implementing its new regulations. However, for those that ardently support a free market, choices for American consumers in the financial market and the ability for low income consumers to get access to short term, small dollar lines of credit, the hope is that bipartisan efforts to quell the CFPB turn out to be successful.

Some Democrats Divided over Payday Lending Regulation Issues

For weeks now, Representative Debbie Wasserman Shultz has faced searing criticism for her stance on legislation that could help to change the way payday loans are regulated in this country – some via TV spots. Why is everyone up in arms about Wasserman Shultz’s stance? Well, the left has a long history of holding a grudge against short term lending operations. And since Wasserman Shultz is a very influential, powerful leader of the Democratic Party, it is easy to see why some Dems are not exactly happy with her. This has all been big news lately, and this article certainly is not the first – or last – time Wasserman Shultz and the payday lending industry will be mentioned.Democrat-Donkey

What is somewhat quietly sneaking under the radar, though, is the fact that there are other elected officials from the Democrat’s side of the fence that are also starkly in support of new measures to delay/eliminate proposed regulations that the Consumer Financial Protection Bureau has been threatening to enact for some time now. For example, the U.S. Senate candidate Patrick Murphy has also thrown his support behind new legislation that seeks to postpone/radically change the plans that the CFPB has had in mind for quite some time.

Of course, taking a stand for something in this country means that you will without doubt face opposition. Murphy’s support of the new legislation has garnered the ire of his rival in the Senate race, Representative Alan Grayson. It seems that Grayson and other leaders in the Democratic Party, along with the CFPB, are intent on cracking down on the payday lending industry. And Grayson will likely use this difference of opinions on the matter as a key talking point as the race continues to heat up.

Murphy was not late to the game by any stretch of the imagination. He was one of the original co-sponsors of the bill, and was joined by other lawmakers from the state of Florida. These Florida leaders believe that the proposed CFPB regulations will do damage to regulations that were passed by the state Legislature a few years back. Representative Dennis Ross introduced the bill and it has gained plenty of support from members of the Florida delegation.

Sean Bartlett is Debbie Wasserman Shultz’s communication director. Bartlett recently stated, “Florida lawmakers know that before 2001, the payday lending industry was running roughshod over consumers in the Sunshine State. The State House and Senate voted unanimously at the time to make reforms that fifteen years later, better protect consumers while still preserving access to credit for working families who need it. The cosponsors of H.R. 4018 believe Florida’s model and experience can be instructive to CFPB as it considers its national rulemaking.”

Some consumer advocate groups, however, believe that the payday lending industry did what it could to influence the Florida payday lending laws. According to the Florida Alliance for Consumer Protection: “In exchange for minimal regulatory requirements, the industry was permitted to issue predatory loans, extracting millions in exorbitant fees each year from the Floridians that can least afford it.”

This battle is just beginning to heat up. And while Wasserman Shultz may continue to be the face of Democratic leaders supporting the new bill to the general media, it is clear that other party members have the same core beliefs about the strength of Florida payday regulations and the ability of states to do this type of regulation on their own. The alternative seems to be for states to simply roll over and allow the federal government, by way of the CFPB, to continue to hand down laws that could potentially destroy already effective regulation measures.

The Great Payday Lending Battle Understanding Florida Payday Loan Regulations

There are currently elected officials – both Democrats and Republicans – who have joined forces to push back against the CFPB’s new payday loan regulations. Many of the opponents of the CFPB’s proposed regulations have mentioned that Florida does a great job regulating this industry at the state level. As such, these people believe that states should have the right to regulate short term loans without interference from the CFPB or any organization that represents the federal government. To help you get more insight into this issue, it is wise to understand the Florida payday regulations for yourself. Here are some things you need to know about payday lending regulations in Florida

Number of Loans are Restricted as are Loan Amounts

A borrower can only have a single outstanding payday loan at any given time. There is a centralized database that is used to track every payday loan processed in the Sunshine State. When a borrower pays back their loan, an extra 24 hour cooling off period is tacked on prior to that person being able to take out another loan. The maximum amount that someone can borrow from a payday lender is $500.

payday21Terms of Florida Payday Loans

A payday loan cannot be given for less than 7 days or more than 31. These loans cannot be rolled over. For example, if someone takes out a two week payday loan, the lender is not allowed to rollover (renew) the loan, tacking on extra fees and running the life of the loan for another two weeks. Note that in this scenario the total loan time would be under 31 days. Terms are set when a borrower takes out a loan. However, if they are not able to pay, loans can be extended without any additional fees being charged.

Payday Loan Fees

The laws in Florida put limits on fees that can be charged on payday loans. The fee cap is set at 10 percent of the loan amount. Additionally, any loan costs, like verification fees, are strictly limited to just five dollars per loan. It should also be noted that the fee cap is not one that accrues over the course of time. If someone were to take a year to pay off a payday loan, for example, the 10 percent would not snowball into a huge fee. If it were for a $200 loan, the fee would never be more than the 10 percent, or $20, plus costs that top out at $5.

Payday Loan Grace Periods

In Florida the law states that borrowers are given a 60 day grace period if they are not able to pay back loans on the original due date. In order to get the grace period, though, borrowers must set up an appointment with a credit counseling agency within a week of the loan due date and complete a credit counseling course within the 60 days of grace that are given. The credit counseling company may recommend a repayment plan, and the borrower must pay their debt according to this plan without incurring any extra fees or loan costs.

Collection Policies

If someone gives a lender a check and the check bounces, there are limits on what lenders can do. The lender cannot pursue criminal actions against the borrower. The lender is allowed to demand payment, but costs are capped at the 10 percent fee and a $5 fee for bad checks that the lender might get charged for from their own bank. Payday lenders can only get additional money if they file a lawsuit and the court sees fit to side with the lending company on this matter.

These are just some of the main points of Florida payday lending regulation. Some are pushing for Florida to be the model for the entire nation, while others simply want the CFPB to back off and allow states to decide on their own how to best regulate the short term lending industry. Which solution do you think is the best for your state?

Operation Chokepoint is Still Causing Problems for American Business Owners

Operation Chokepoint, by any reasonable person’s estimation went down like a led balloon. This initiative not only put undue pressure on banks, it also targeted legitimate business owners and caused them a lot of financial hardship. It is easy to think that Operation Chokepoint is yesterday’s news, and that it is no longer causing problems for people. That line of thought, as it turns out, is absolutely wrong. The fact of the matter is that the reverberations of Operation Chokepoint are still being felt by business owners all over the country.

Gregory Bone, who operates a payday lending company in Arkansas, has seen his business suffer because of Operation Chokepoint. And it seems that this suffering continues to take place. When interviewed, Bone said that he took measures to make sure he would avoid legal conflicts. The payday lending industry is currently overseen by federal and state government officials. Even though Bone’s business kept its nose clean, he said that U.S. Bank told him back in January that his checking account was being shut down, with very little warning. The only viable explanation he could come up with was: Operation Chokepoint.Some Reasons Why Women Use Payday Loans More than Men

Elaborating on what he has gone through, Bone said, “There’s just no other reason for it.” For over two years, via investigations by Congress, House hearings and budgeting maneuvers, lawmakers from the Republican side of the government have been trying their best to put a stop to Operation Chokepoint. Right until not too long ago, the House voted 250 to 169 in favor of legislature that would end this initiative, but have not had much success. For this bill to become official, it has to get through the Senate. And if that were not enough, it then has to get signed by the President.

It may all prove to be a day late and a dollar short for innocent people running businesses who are still experiencing damage because of Operation Chokepoint!

This operation was originally designed to help fight off financial fraud. It put pressure on banks to close any accounts for businesses that were deemed to be up to fraudulent/illegal financial activity. Critics of this operation, though, think that federal banking regulators overstepped their bounds via the operation and pressured banks to close bank accounts for entire industries that the Obama administration is known for not approving of. Some of the industries that critics have alleged Operation Chokepoint targeted include pawn shops, tobacco distributors, dating services, firearm sellers and payday lending companies. Congress did increase its investigations activities surrounding Operation Chokepoint, and some of this targeting seems to have died down a bit.

Some members of Congress warn that these types of activities have not completely stopped. According to Representative Blaine Luetkemeyer, “It hasn’t gone away. “[But] it has been reduced.” Luetkemeyer understands the financial industry, having been a bank examiner previously. He is working to pass new legislation that would put an end to Operation Chokepoint once and for all. His office oversees an email address that business owners can send emails to if they believe they have been unfairly targeted because of Operation Chokepoint.

The Obama administration is on its way out. However, unless Rep. Luetkemeyer and others who take his side on this issue are able to achieve a major breakthrough, the damage that Operation Chokepoint continues to cause will likely continue to happen for quite some time to come. And this, of course, means that more legitimate, honest business owners, like Mr. Bone, will continue to see their businesses under a government-sponsored assault.

Can Payday Lenders and the CFPB Come to an Understanding?

There are lots of subjects that divide people on a regular basis. Folks who love one form of music, may despise another musical form. Some people think spending time outdoors is amazing, while others don’t like to venture too far from their favorite living room chair. And forget about trying to get conservatives and liberals to agree on much of anything. Another decisive issue that is getting a lot of attention lately is that of short term lending. Some consumer advocates believe that these loans are the worst thing in the world, while others believe that payday lending companies provide a valuable service to their customers. There’s just no reaching a middle ground on some subjects.direct_payday_loans_pros_cons1

Many who fashion themselves as consumer protectors have a deep seated hatred of short term loans, and view the providers of these loans in a bad light. People who tend to favor consumer choice usually believe that grown people in this country are fully capable and allowed to make choices about the types of financial products and services they choose to pay for; even if a loan has expensive fees to pay, these folks believe that everyone should have the freedom of choice to decide on their own.

As far apart as these two groups seem to be, there may actually be some common ground that both sides are not even aware of: They both want consumers to get reasonable access to lines of credit, and expect that those products are priced fairly for the people that use them. Once you get past that basic fact, though, the contention between both sides begins to heat up to a point where some people get downright nasty about the topic.

For example, there are news stories now about how the Consumer Financial Protection Bureau (CFPB) – the most powerful and vociferous of all the groups against payday lending – has been violating the sovereignty of Native American tribes as a part of their efforts to introduce new regulations on the payday lending industry. This industry happens to be a major source of income and employment for some tribes. This is a precarious battle that will likely wage for some time to come.

The Public Affairs Head for Advance American Jamie Fulmer said, “What strikes us is that when the Bureau was established by Professor and now Senator Warren and Director Cordray, there was a lot of talk about the need not to dictate consumer choice but to provide a level playing field across a broad spectrum of financial services companies.” Fulmer went on to note that the financial landscape right now is not so level right now.

In a recent interview Fulmer explained, “Customers are redefining what mainstream customer services are. We think the type of loan we are type of providing falls strongly in the mainstream, because consumers find that they have an increased, yet regular, need for small dollar short-term credit. We believe that was the correct approach and it was rooted in ensuring simplicity, transparency and full and complete and understandable disclosure.”

As to whether or not the CFPB and the major players in the payday lending industry can ever come to an understanding is something that we will all have to wait and see. However, more people – both private citizens and elected officials – are now starting to come out of the woodwork in support of the freedom of financial choice that payday lenders provide to their customers. Proponents of payday lending seem willing to reach common ground; the ball is now in the court of the CFPB.

Are Critics of the Payday Lending Industry Biased?

If you were to do a Google search to look for articles about the payday lending industry, chances are you’d find hundreds of articles and op-eds that preach about how evil this industry is. One such op-ed was recently written by Gary Kalman from the Center for Responsible Lending. In this piece, titled “Stop the debt trap” Kalman uses a tone of sternness when talking about payday lenders. In fact, this op-ed pretty much condemns the industry altogether. Despite the fact that CRL has waged a war against payday lenders for decades, and has even done so via subsidies received by taxpayers and utilizing federal regulators, the fact of the matter is that all of these criticisms of payday lending continue to drive business to Self-Help, a credit union that is professionally affiliated with the Center for Responsible Lending.Banks Being Scrutinized By Regulators for Payday-Like Loans

Kalman, for his part, continues to state that his organization is simply “fighting to rein in the abuses” (alleged abuses, we might add) of payday lenders. This is both misleading and insincere. And the same thing could be said about how the Center for Responsible Lending has continued to malign the actions and character of both payday lenders and the very customers who depend upon these types of loans.

The bottom line is that Self-Help makes it a point to offer financial services/products that would definitely derive a benefit if payday loans were to be completely removed from the market. The network of businesses and groups that make up the Self-Help group – which have already received a combined $380 million-plus in loans, grants from the government and other taxpayer funds – has put millions of dollars into the pockets of lobbyists who are petitioning the federal government to take more serious measures against payday lenders, including putting new regulations on the industry.

The Center for Responsible Lending spouts off about being the “customer advocacy” branch of Self-Help. It has made use of the funding it receives – funding it has been hauling in for twenty years now – to fuel its smear campaign against the payday lending industry. It continues to disparage the industry and the loans that it offers, and to anyone willing to look into the matter, it is looking to get rid of its stiffest competition; noting more, nothing less…

Experts on the subject have been wondering if Self-Help’s financial products are more costly than the terms that most payday lenders offer. The fact of the matter is – regardless of affordability – Self-Help offers short term loans to consumers. As such, the organization has directly benefited from the restrictions they have fought so hard to saddle the payday lenders with. The elephant in the room is just how this organization is getting away with using the government to punish its competition, while they continue to carry on business as usual.

Recently, a new regulation was passed into law in Oregon. This law puts a cap on short term loan interest rates and “…reduced access to payday loans in Oregon, and … former payday borrowers responded by shifting into incomplete and plausibly inferior substitutes,” according to one published study. “Most substitution seems to occur through checking account overdrafts of various types and/or late bills.”

With all of this in mind, it is clear that many of the payday loan opponents out there – especially those who are especially vocal about the subject – are biased. In the case of the Center for Responsible Lending, it is apparent that this organization is biased for a very good reason: The elimination of payday lenders would be most profitable for this group, indeed!

Payday Lenders Changing up Business Tactics Prior to Government Crackdown

Providing loans to people who are strapped for cash has proved to be a good way to make a living for the owner of Bellicose Capital. This man’s name is Matt Matorello. Matt’s company helps to run some Michigan payday lending websites for a Native American tribe. The websites offer small loans to customers and charges fees in return for making these loans. Over the years, Bellicose has collected a lot of money; to the tune of tens of millions. The tribe that this company works for keeps roughly 2 percent of the earned revenue. It looks like Matt is going to sell the business to the tribe for about $1.3 million dollars on the front end, with as much as $300 million dollars in payments down the road, depending upon the success of the business. The company projects that it will earn nearly $58 million each year down the road.payday-online

Martorello is not the only owner of a payday lending company who is looking to get out of the industry lately. There are many payday lending companies that are overhauling the ways they do business. These lenders are changing up the products they offer or moving their headquarters to countries outside of the US. A major reason that so many lenders are either getting out or changing their ways seems to be due to the Consumer Financial Protection Bureau getting ready to put now restrictions and regulations in place in 2016. These regulations have been over four years in the making, and the CFPB has not yet finalized all of the details. They have stated, though, that their new rules will prevent borrowers from taking out short term loans that they cannot afford to pay back and from taking out multiple loans at the same time. Lenders believe that the CFPB is on a mission to destroy payday advance loans and other short term loans. These regulations leave the lenders with few options other than to change the way that they do business.

According to an analyst at Height Securities named Ed Groshans, “The CFPB made it extraordinarily clear that the path they’re going down is going to eliminate the vast majority of payday lending.” Payday loans are short term loans that require the borrower to either write a postdated check or allow lenders to make automatic withdrawals at the agreed upon repayment date. The new regulations will cover other alternative lending products and services that allow people to pay back their loans over a longer period of time. Bellicose, the company we told you about earlier, is a consulting company and not a lender, though the company does specialize in short term installment loans.

Up until now, most payday lending regulation has happened at the state level, and the rules have been well understood by lending companies. Some lending companies have struck deals with Native American tribes. Some critics call these tactics “rent-a-tribe”, suggesting that lenders and consultants are only doing business with tribes in order to skirt existing payday lending laws. With the new regulations being handled from a federal level, though, it will be increasingly more difficult for lending companies to do business. Many experts believe that the CFPB has no business getting involved from a federal level, being as so many state laws have worked well for both lenders and borrowers over the years. As is usually the case, however, the CFPB is proving it is truly a branch of the modern day American government by doing all that it can to overstep its boundaries and to make doing business even more difficult than it already is for short term lending companies. It’s no wonder so many lending companies are changing things up in order to avoid dealing with the new regulations that are about to take effect.

A New Perspective on the Debate about the Payday Lending Industry

Other than the estimated 12 million people who take out payday loans each year, just about everyone else despises these types of loans. Those who have taken up arms against payday lenders include consumer advocate groups, clergy members, writers, professors and even the President of the United States. Is it really right for all of these people to hate the payday lending industry, though? Many of the aspects of payday loans that people seem to vilify the most – ongoing debt cycles, allegedly targeting low income people and minorities – don’t really prove to be true when one takes an honest look at the short term lending industry. This is not to say that the industry is perfect, by any stretch of the imagination. However, it is in everyone’s best interest to learn the truth and then to make a judgement call from there.

Let’s take a look at a few aspects of short term loans and see if it is really justifiable for anyone to outright hate the payday lending industry in this country.

Payday Loan Fees

payday-onlineWhen people write scathing articles about payday loans, they often focus on the fees that the lending companies charge. At many payday lending locations, the lenders charge about $15 dollars for every $100 that is borrowed. Those types of fees would be alarming if they were attached to a mortgage or a high dollar loan. But considering that the majority of borrowers understand these rates for what they are – flat rate fees, and not yearly percentage rate fees – one should come to the conclusion that these rates are not all that high or difficult to repay.

And there are plenty of payday lending companies for people to choose from. It is not like there is a monopoly on this industry, and that borrowers are forced to pay these types of fees by a single lending company that is controlling all of the short term lending going on in the United States. There are thousands of local lending locations and hundreds of online lenders that people can choose to get loans from. Of course, some people are disturbed by the fact that there are so many payday lending locations. You don’t hear those same pundits getting upset about the number of McDonald’s locations, do you? Of course not. In a free market economy, businesses are free to develop and thrive IF the market for the businesses’ services or fees actually exist.

This leads to a very interesting point that many who oppose payday lending never seem to get: There is a great demand for short term loans all across the land. People who either don’t or won’t deal with mainstream banks and lenders, still need to borrow money. If these people – hard working adults who understand exactly how much they need to pay back within a short loan term – choose to do business with payday lender, who is anyone else to try to eliminate this industry; and industry that provides vital financial services to a large section of the population?

The fact of the matter is that there is no way to make everyone see eye-to-eye about the topic of the payday lending industry in the United States. However, the time has come for people to get a better understanding of this industry, and some of the reasons that people seem to loathe payday lending companies as a whole. It is only when we can get past the rhetoric and accusations that we ever get a better handle on any topic that might be considered controversial to others.