No Credit Check Payday Loan Hotline – Can This Really be Beneficial?

USA Payday Loan Forever is back in the news for starting another new so-called customer education and assistance tool. They have introduced a payday loan hotline for customers. This hotline will be for those individuals struggling with no credit check payday loans. They plan to offer information to their customers on all payday loan issues. In fact, they have stated they will even provide information and advice on how to get out of the payday loan cycle, especially for those clients using them for non-emergency purposes. Their spokesperson said of the hotline, “This hotline is intended as a way for customers to receive personal finance advice when they feel like they are trapped by their finances and cash advance loans.”

This no credit check payday loan company has also put out learning videos for their customers covering payday loan issues. They have stated, “We want our customers to be able to handle their payday loans responsibly.” They claim to want their customers to only use their services when it is an emergency, instead of using these high Annual Percentage Rate (APR) loans as a means to supplement their lives. They further state, “These services are meant as emergency funds, not something to base your life around.” They claim to want to change the industry to help people in an emergency situation and not prey on them in their time of need.

Many industry watchers and consumer advocacy organizations see this as just another way of advertising. Also, to stand apart from the thousands of other no credit check payday loan companies by appearing as the “good lenders” that are looking out for their clients. The borrower will still be subject to the same lending practices and a triple digit ARP on any loan they take out.

Consumer advocacy groups say this is too little too late as the majority of no credit check payday loan borrowers are already stuck in a vicious cycle of debt. They would prefer to see the payday lenders lower their APR, fees, and interest they charge on these short term loans. Also, they continue to push for tougher regulations from the local, state, and federal levels. Aside from the homegrown payday loan companies, the overseas lenders are left to run rampant online and even have four digit ARPs. The customer hotline and videos are a nice gesture, just not believable in their eyes. The Consumer advocacy groups want to see more in the way of reform.

 

 

 

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