Startling New Report – Points to Americans Using Payday Loans Just to Live

What is meant to be the ultimate last resort, no credit check payday loans, has turned into a way to survive for many Americans. Actually, this is not contained to the U.S., as all across the globe there are struggling families using these three or four digit Annual Percentage Rate (APR) loans for daily living.

People are faced with taking out several of these loans annually or live without food, water, electricity, gas, vehicle payments, insurance payments, and other living necessities. This report also shows that individuals with a yearly income of $100,000 dollars and over are also taking out no credit check payday loans.

Out of all the loans acquired throughout the year, at least seven of every ten are no credit check payday loans. This figure is staggering for consumer advocacy groups. This is because they know the devastating effects these loans have on the people who get them. Many times the individual will take about eight payday loans a year. Each loan carries high charges and APR leading him or her to pay out more than $500 dollars in interest and fees each year.

Industry watchers and financial analysts believe this spike in no credit check payday loans is due to the housing costs, energy costs, unemployment, and other economic pressures, which are all on the rise again. When people cannot pay their bills and feed their families, they turn to these payday loans due to the relative ease of obtaining them.

However, once they enter into the no credit check payday loan realm, most are stuck there for a long time until he or she can finally manage to pay off the loan or default. Then, once they have defaulted, he or she will be harassed by creditors and have it reported on their credit. Unless they took out a loan where the lender auto-deposits a personal check or debits their banking account. This usually leads to a ton of issues, including NSF fees, bad check arrest warrants in some states, and more negative reports on his or her credit.

No credit check payday loans will continue to be on the rise as long as stronger laws and regulations don’t exist to protect the borrowers. These predatory lenders package the loans as a means of taking care of emergencies, but hand them out left and right even if the customer cannot afford to pay it back.

Danger! – Your Credit Score is at Risk

Danger! – Your Credit Score is at Risk

Q: I took out a payday loan last month and I am struggling to make my payments. It looks like I may default on the loan if I cannot make the next payment at the end of the week. I was told that it would go on my credit score as a negative mark. This just does not seem fair. I did not have to have good credit to get the loan and they did not care to check my credit. If I take out a no credit check payday loan and I default in the loan, why will it go against my credit?

Defaulting in Dallas

Dallas, Texas Continue reading Danger! – Your Credit Score is at Risk

The Astounding Cost of Payday Loans

Are you willing to pay big time money for a small time loan? Well, if you are considering taking out a no credit check payday loan, this is exactly what you will be doing. The Annual Percentage Rate (APR) on most no credit check payday loans is in the three to four digit range. This means you could be paying as much as 800 percent on a $200 dollar fourteen day loan. This should be enough to make people run the opposite direction. However, this is sadly not the case. In fact, more and more people worldwide are turning to these predatory lenders just to make ends meet.

CNN Money just released reports of just how much these no credit check payday loans are costing the borrowers each year. Out of all the U.S. borrowers, each person will pay around $520 dollars on average. This is due to several factors. For one, once an individual gets involved with payday loans, he or she usually gets caught in a debt cycle where they end up taking out several loans. Each year, most of these borrowers will get at least eight no credit check payday loans for just under $400 dollars each.

These fees come from the astronomical ARP, extension and rollover fees, processing fees, late or early payment fees, and the list goes on. Fees of $15-$20 dollars for each $100 dollars borrowed are on the low side, but they add up quickly when taking out multiple loans. In fact, being able to find no credit check payday loans with an ARP of 300 percent is a great feat these days. This is because many payday lenders charge well over this and some as high as 800 to over 1,000 percent.

The nice packaging of these fast cash loans makes them almost irresistible to those in desperate financial need. He or she can simply fill out the required paperwork and follow the lender’s steps, then within a short time they have the cash they need. Also, many people feel they are about to meet the loan repayment deadline on their next payday, but they fail to consider their bills and living expenses for that week. This is how the payday debt cycle begins.

Sadly, most payday loan borrowers have to take payday loans with another lender just to pay off the previous one. This keeps the pockets of the no credit check payday loan companies full of money, while their customers struggle just to put food on the table for their family.

 

Payday Loans Under Global Review

Several countries have begun an in-depth investigation and review of the no credit check payday loan industry. This was spurred by thousands of complaints and reports of usury by the lending companies and their practices. United Kingdom’s Office of Fair Trade or OFT started this ball rolling.

The investigation will review the no credit check payday loan companies and how they operate. There will be checks to be sure none of these lenders are crossing the line and breaking standing laws and regulations. Investigations into how they are lending, such as no credit check. This could be deemed as irresponsible lending in many countries.

Aside from ensuring borrowers are not being taken advantage of, the results of this investigation will assist financial watchdog departments create new no credit check payday loans policies and guidelines. If there are proven instances of usury, these will be dealt with in the proper manner, such as fines, citations, licenses revocations, or closures.

One of the points of greatest concern for the investigative groups is just how the no credit check payday loan companies are dealing with delinquent borrowers. These lenders know these high Annual Percentage Rate (APR) loans are all but set up so he or she will fail and become more indebted to the payday lender, such as rollover or extensions. Many times the loans and all the attached fees and interest are demanded on the spot. Some payday loan companies even go as far the threatening to sue the borrower.

Another point of concern is the entire idea behind the no credit check payday loan. This means the lenders are not making sure their customer can even afford his or her loan in the first place. Many feel this practice is inviting those who are struggling financially to get even deeper in debt.

The other serious point under review is the no credit check payday loan companies advertising and marketing plans. For the most part, they seem to be targeting those in desperate need. The ads usually state how easy it is to get a loan for emergencies and/or to pay bills with the near instant cash.

These investigations are planned for online and brick and mortar no credit check payday loan businesses. Previous investigations have resulted in several U.S. states and several countries to make payday loan policies. Industry watchers are predicting the same will happen this time as well. Also, consumer advocacy groups are hoping for more change will result from the conclusion of the review.

 

Military Son Denied Payday Loan

Q: My son is in the U.S. Army and needed to take out a no credit check payday loans for a bill he forgot about. However, once the lending company found out he was in the military, they denied his application stating it was illegal to lend to him. My question is why is this illegal? Also, I plan to take out a payday loan in my name so I can help my son. Is this all right to do since I am going to give the money to my enlisted child?

Thank you in advance.

Proud Military Mom

Anchorage, Alaska

Continue reading Military Son Denied Payday Loan

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.

 

New Method of Targeting Borrowers

In the past, most no credit check payday loan companies only targeted the financially desperate. They touted their services to those in emergency situations, such as unexpected bills, medical issues, or a broken vehicle. However, this group of people that have made the payday loan industry multibillions is no longer enough. They are always on the prowl for more prey. The new emerging trend in the payday lending world is to market their services to homeowners, business owners, and other financially stable individuals.

New payday loan marketing advertisements are popping up stating how great one of these high interest loans would be for re-decorating the home or office, to purchase luxury items like golf clubs, and even for a romantic getaway. They are leaving out how these too easy to obtain no credit check payday loans should only be used as a last resort after all other options have been exhausted.

It seems as if their advertisements have been working because there are reports that over 20 percent of the applicants for no credit check payday loans are middleclass or above income earners. The appeal of a fast no hassle loan, which can many times be done right from his or her home computer, is apparently gaining traction in this group. They have the extra disposable income to pay out the triple to quadruple digit Annual Percentage Rates (APRs) on these no credit check payday loans.

However, this income group is walking this dangerous tightrope with these loans. They are usually full of added fees, financing interest, and high APR. If one mistake or forgotten payment, the borrower could easily be on the fast track to financial and/or credit ruin.

For anyone needing a loan, it is always the best choice to skip over taking out a no credit check payday loan. Even those just looking for a quick few hundred for frivolous things that are not emergencies or necessitates should always go to their local bank branch to arrange a small loan there. The APR will be reasonable, and he or she will be less likely to get caught in a payday loan debt cycle.

For those who insist on utilizing the no credit check payday loan industry for non-emergency purposes, he or she should always shop around locally if possible or online for the company with the best rates and the lowest fees. This way the borrower will not have to pay back fees totaling close to what the loan amount was.

Thinking About Getting A No Credit Check Payday Loan to Cover a Bill

Q: I have been thinking about getting a no credit check payday loan to cover the bill for a trip to the emergency room. I have looked into all avenues available to me and my credit is simply not up to par to take out a traditional loan. I do not have anyone I can borrow from and really do not want this bill to become default, and then end up on my credit. My problem is I do not know where to start or what to do in order to get a payday loan. Can you give me some pointer and/or instructions on where to begin?

 

Waiting for Guidance

Racine, WI

Continue reading Thinking About Getting A No Credit Check Payday Loan to Cover a Bill

Owner of 6 Payday Lending Companies Files Complaint of State Law Violations in Interest Caps

Montana – Bernie Harrington was the owner of at least six no credit check payday loans companies in and around Billings, Montana. Therefore, when the 2010 Initiative 164 was promoted, voted on, and passed to cap interest rates on all payday loans, he was ready to put up a fight. Well, he succeeded by filing a complaint with the State Political Practices Commissioner’s office.

Jim Murry, the Commissioner, then had to investigate the claims brought by Harrington. Commissioner Murry did find some minor, technical violations, but violations nonetheless. No credit check payday loan opposition groups in how they promoted the Initiative 164 made these violations. There were eight of these groups who violated Montana’s champing rules on the “I-164: 400 Percent Interest Is Too High” campaign. The possible fines could remain at the current $2,430 dollars, but they are still under negotiations. The eight groups and their projected fines are as follows:

  • AARP Montana – $150.00
  • Montana Women Vote – $250.00
  • NeighborWorks Montana – So far only a negligent amount
  • Montana Community Foundation– $200.00
  • Women’s Foundation of Montana – (Montana Community Foundation’s endowment fund and share the fine)
  • Cap the Rate – $1,500.00
  • Rural Dynamics Inc. – $100.00
  • Montana Human Rights Network – $230.00

 

These fines are a result of a simple oversight by the groups in non-disclosure issues, such as there not being the mandatory “paid for by” provision in their ads and websites. Other infractions included reporting their financial files in a timely manner.

Harrington, who brought the claims against the groups, is still unhappy and feels too much time has passed since his 2010 filings to make a difference. Also, Intuitive 164 will not be overturned, which was voted on and passed by 72 percent of the voters. There were only 28 percent who were against capping the rates at 36 percent on the no credit check payday loans. This caused more than 100 payday lending businesses in the state to close and/or move elsewhere.

Many feel the claims are just petty and spiteful and a waste of taxpayers’ money on the investigation, the county attorneys’ time, court costs, and any civil suits that could result. They feel Harrington was just seeking revenge, even though it was clear Montana residents did not want payday lenders to operate in their state and charge triple digit Annual Percentage Rates (APR) on their short term loans. Even residents feel this is a very backhanded move and should no longer be pursued, as they have spoken loud and clear with their votes.

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.