Feb 12
3
Benefits of payday advances
One of the huge benefits of online payday advances is that you don’t have to leave your house to get them. Maybe you remember the days before the internet when everything was done in person. In those days if you wanted to get a payday advance you would have to leave the house and head out to a brick and mortar payday lender that could be miles away from your house and spend hours completing applications and waiting for them to find a lender willing to give you cash. The power of the internet has put an end to all that and now you can secure a payday advance from the comfort of your own home.
Online payday companies have stepped in to fill a need and have eliminated a good deal of hassle and stress from the payday loan process. Using their state of the art secure online systems you can apply for and be approved for a payday advance in less time than it would have taken you just to get to the lenders office 10 years ago. And the benefits of online payday advances don’t stop there. Because the lenders don’t run credit checks you are almost guaranteed approval.
Here are a few other benefits of the payday advance:
- You can have the money in your bank account by the next day
- You help the environment because everything is electronic with no paper needed
- It is private and no one knows you are getting a loan
- You have a large selection of lenders to choose from
- It can help you stay out of further credit problems by allowing you to pay bills before they become overdue
As you can see there are many benefits to online payday advances, which is probably why they are so popular.
With all of these great payday advance benefits it is likely the industry is here to stay and that is good news for the many people out there who utilize their services. Without payday lenders many people would be stuck with bad credit due to some emergency that prevented them from paying a few bills on time. By using a payday advance responsibly many of these people were able to stay on track financially, and reduce overall stress levels. Consumers should only borrow what they need to pay their pending bills or living expenses, and should be comfortable that they can pay back the payday loan when their next paycheck arrives.
Posted in PayDay Loans by .
Feb 12
2
What are Fast Loans?
Providers of fast loans typically provide a small dollar, short-term alternative loan product to meet the need of underserved customers who may not have access to traditional credit products. Fast loans provide a more affordable alternative to underserved customers utilizing higher cost credit solutions from many providers. The FDIC and other regulatory agencies have been concerned that banks were not meeting the credit needs for un-banked and under-banked segments and welcome companies that provide a small dollar, short-term alternative loan product to meet the need of underserved customers who may not have access to traditional credit products.- Fast loans lenders typically target customers who:
- Have established checking accounts and on-going direct deposit patterns
- May not have access to traditional credit products
- Require convenient access to short-term liquidity
- Currently use non-traditional credit sources to meet short-term financing needs
- Fast loans features typically include:
- Line of credit up to $1500
- Fees based on the amount advanced and term
- No credit qualification or underwriting required
- Single Payment Model or the ability for multiple installments
- Immediate access to funds once the account is activated
Posted in PayDay Loans by .
Jan 12
30
Payday Loan Lenders & the Industry
Payday loan lenders must to adhere to a litany of regulations. Most notably, the truth in lending provisions and the USA Patriot Act are two major regulatory items that warrant additional discussion.
The Truth in Lending Act (TILA), Title I of the Consumer Credit Protection Act, implemented by Reg. Z, aimed at promoting the informed use of consumer credit by requiring disclosures about its terms and costs. Payday loan lenders follow the procedures for creating documents connected to this act, most notably the TIL, or truth in lending disclosure. TILA is intended to enable the customer to compare the cost of a cash versus credit transaction and the difference in the cost of credit among different lenders.
The regulation doesn’t just apply to payday loan lenders. It also sets a maximum interest rate to be stated in variable rate contracts secured by the borrower’s dwelling, imposes limitations on home equity plans that are subject to the requirements of certain sections of the Act and requires a maximum interest that may apply during the term of a mortgage loan. In addition to financial disclosure, TILA provides consumers with substantive rights in connection with certain types of credit transactions to which it relates, including a right of rescission in certain real estate lending transactions, regulation of certain credit card practices and a means for fair and timely resolution of credit billing disputes.
The credit provisions of the regulation apply to all payday loan lenders who extend consumer credit more than 25 times a year or, in the case of consumer credit secured by real estate, more than 5 times a year.
The USA Patriot Act is another critical law that is crucial to payday loan lenders. Congress passed the USA PATRIOT Act in response to the terrorists’ attacks of September 11, 2001. The Act gives federal officials greater authority to track and intercept communications, both for law enforcement and foreign intelligence gathering purposes. It vests the Secretary of the Treasury with regulatory powers to combat corruption of U.S. financial institutions for foreign money laundering purposes. It seeks to further close our borders to foreign terrorists and to detain and remove those within our borders.
In federal law, money laundering is the flow of cash or other valuables derived from, or intended to facilitate, the commission of a criminal offense. It is the movement of the fruits and instruments of crime. Federal authorities attack money laundering through regulations, criminal sanctions, and forfeiture. The Act bolsters federal efforts in each area. Payday loan lenders closely follow the requirements of this act to ensure that they are not violating any of its provisions.
Many payday loan lenders, by virtue of the fact that they are funded and clear transactions through major national retail banks, also follow several provisions within the Bank Secrecy Act. This act authorizes the Treasury Department to require financial institutions to maintain records of personal financial transactions that “have a high degree of usefulness in criminal, tax and regulatory investigations and proceedings.” It also authorizes the Treasury Department to require any financial institution to report any “suspicious transaction relevant to a possible violation of law or regulation.” These reports, called “Suspicious Activity Reports” are filed with the Treasury Department’s Financial Crimes Enforcement Network (FinCEN).
When a customer opens a new credit account with a payday loan lender or any other new extension of credit, Customer Identification Program (CIP) regulations require lenders to:
• provide a disclosure,
• obtain information,
• verify identity,
• check a new government list and
• retain records of the process.
The purpose of the loan is irrelevant to this regulation – it is about documenting the borrower’s identity. These regulations are aimed at denying the use of the U.S. financial system to those involved in terrorist financing and money laundering. However, supplementary information accompanying the originally proposed regulation indicated a hope that the regulations would help reduce the incidence of the fastest growing crime in the U.S., identity theft.
Posted in PayDay Loans by .
Jan 12
29
What are Payday Loans?
Most Americans have at least a passing knowledge of what payday loans are, and how they work. Unfortunately some people have a negative connotation when they think about these types of loans, mostly due to controversy and negativism stirred up by the mainstream media over a few isolated cases. The fact of the matter is that payday loans can have many benefits for consumers and when used responsibly can actually be a better alternative to late bill payments, bouncing checks or disconnected utilities. The vast majority of short term loans are paid back without any negative repercussions after saving their recipients time and money and often stress.
In these tough economic times, Americans have little to no savings and many are living paycheck to paycheck. This can work for some time, but when any type of emergency situation arise, it is possible to get into dire straits. A failing car, unexpected illness or even a broken water heater can cause stress and financial hardship if you don’t have a fund of savings to draw on immediately to pay for these types of situations. This is where payday loans come in, by providing small amounts of money (typically up to $1,500) for a short period of time (typically 1-4 weeks) to address emergency situations.
Payday Loans for Ease of Credit
One huge benefit of payday loans is the ease with which they can be obtained by almost anyone. Payday lenders do not perform credit checks, do not report to the credit agencies and do not require any form of collateral to approve a loan request. This makes them ideal for a large number of people who have had previous credit problems such as late bill payments, bankruptcy or even a complete lack of credit.
Ease of Qualifying for Payday Loans
In addition to the ease of obtaining a payday loan, it is also easy to qualify for one because the lenders do not require much. Typically there are 5 criteria to meet to be approved for United States payday loans:
1. You must be 18 years old or older
2. You must be a U.S. citizen
3. You must currently be employed
4. Your current salary must be over a certain level designated by the lender (typically $800 to $1k monthly)
5. You must have a checking or savings account at a traditional bank that is able to accept direct deposits
Plenty of Options for Payday Loans
There are many options when looking for payday loans; from brick and mortar establishments in your own community to the many online payday lenders. If you have internet access it has never been easier to take out a payday loan from the privacy of your own home. Many people do not like going to physical branches or payday loan stores to go through the application process, but online payday loans get around this and let you have peace of mind.
To recap, payday loans have many benefits such as; they provide easy credit, they are easy to qualify for and you have many options when choosing a payday lender. Don’t get caught in a bad situation just because you do not have the cash to pay for an unexpected bill, broken appliance or auto or have suffered an emergency illness or injury. Take advantage of the payday loans available to you and use them responsibly and you will join the growing ranks of people who have been able to prosper by using this innovative way to get credit and keep your finances intact.
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