At Least Twenty-Five Percent Increase in Payday Loan Madness

Although the economy has improved slightly, the estimated rate of no credit check payday loans is expected to go up by at least twenty-five percent within two years. Industry and financials researchers have been looking into the trend at people from all different background and economic standing turning to no credit check payday loans to supplement their lifestyles and/or the usual emergencies. The findings show this increase will take place if this trend is not curved. The payday loan industry saw over an eleven percent increase in the year 2011 alone. This number is expected to be even higher for 2012.

Financial gurus and consumer advocacy groups are very concerned that this number will add dramatically to the already thousands of individuals currently in no credit check payday loans debt. People who take out these high Annual Percentage Rate (APR) loans are usually over $1,500 dollars in debt.

When reports of the no credit check payday lenders passing out loans hand over fist, many were outraged at their careless lending practices. The response from some of the lending representatives was callous in that they feel they reject enough applications throughout the year and that they are only running a business and every business is in it to make a profit.

Other lenders report they are only providing a needed service to those who do not qualify for traditional loans and help people when they are in desperate need and have nowhere to turn. Some overseas payday lenders claim the only reason their application rates are on the rise is due to outside borrowers from the West.

No credit check payday loan companies claim to promote only responsible lending practices and if they find out they have borrowed many times or have several loans out at once, they will turn down his or her payday loan application. However, many advocacy groups say this is not the truth. They claim to be able to show proof where these lenders will approve anyone.

What is causing such great concern is the triple to four digit ARPs many of the no credit check payday loan companies charge their customers. Also, these loans usually carry stiff late penalties and financial and administration fees. In addition, the groups feel the loans are set up, so the borrower will default and incur sky high fees. Although the average length of a no credit check payday loan is about two weeks, the customer can end up paying in the hundreds of dollars by the end of the short term loan.

 

Leave a Reply

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>