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.

 

What is a Vehicle Title Loan?

A vehicle title loan is basically like pawning your car, truck, SUV or van for cash, but you still get to drive it. You will be eligible for this type of loan only if you are the owner of the vehicle and if the title is clean and clear. This means you have paid off the loan and have no liens against the title. The title loan company will keep your title until you repay the loan. If you default on the loan, they will become the new owners of your vehicle. Usually a towing company will be sent to retrieve your car. This makes a title loan very risky for the borrower.

How it Works

You can find title loan companies in many states as well as online. Once you decide on a company you are going to do business with, you have to begin the paperwork and application process. Be aware, many of these loans are no credit check loans similar to the no credit check payday loans. These loans carry an extremely high Annual Percentage Rate (APR) and can sometimes be higher than 800 percent. That having been said, following are the steps required to get a vehicle title loan.

  1. Application Process – This is where you will fill out all the necessary information the loan company requires. You should gather information such as driver’s license number, the VIN, references with phone numbers and addresses, and so on.
  2. Title and Insurance Proof – Once your application is approved to go to the next step, you will have to show the loan company you have the title and current proof of automobile insurance. The insurance is to protect their investment.
  3. Sending in Your Title – Upon your application getting approved, you will have to mail the title lender your vehicle title per their exact instructions. If you go directly to a brick and mortar location, you will just hand it over before you leave.
  4. Get Your Cash – Once the lender gets your car’s title, you get your money. The loan amount will be dependent on how much you are requesting versus the value of your vehicle and current title loan maximum.

After you receive your vehicle title loan cash, you will only have a predetermined amount of days to pay back the loan. Remember, if you do not pay off the loan or request an extension, you will lose your vehicle. Therefore, this should be considered only in a last resort situation.

The Pros and Cons of No Credit Check Mortgage Loans

Are you in thinking about purchasing a home? Is your credit slowing down or stopping the process? Have you been considering taking out a no credit check mortgage loan? If you answered yes to these questions, be sure to keep reading. These types of loans may sound appealing, but they can carry severe penalties, Annual Percentage Rates (APRs), and high fees. Therefore, below you will find the pros and cons for these types of mortgage loans.

First, the Pros

As any home owner will tell you, getting the financing on a new home is the most nerve racking event next to a birth. You have to fill out miles of paperwork, only to hope your credit is good enough to get the loan. Well, for many hard working individuals in the U.S., credit is the sole reason he or she cannot get the hoe of their dreams. If their credit is considered poor, traditional lenders will turn them down, even if they have the down payment and can afford the monthly payments. Does this sound like your situation? You are not alone. Here are several reasons to consider a no credit check mortgage loan.

  • Almost anyone can be approved
  • Your credit score does not matter
  • If you have the money and the collateral, you get the loan
  • The process is fairly quick
  • You can be self-employed and still be approved

Now, the Cons

Of course, you cannot expect to get something for nothing, and these types of lenders operate in the same manner as no credit check payday loan companies. In other words, you can expect a high APR on your loan. There are several cons associated with these loans and some of the top reasons to reconsider are as follows.

  • Astronomical APR with some well over 400 percent
  • The fees are very high, such as administration fees and filing fees
  • There is usually no grace period in repaying the loan as with a traditional lender
  • The down payment is going to be higher than a regular mortgage loan
  • You will end up paying out far more for the loan than with a traditional mortgage

As you can see, this is not a decision that should be rushed into, no matter how anxious you are at purchase a new home for you and your family. There are considerable drawbacks as well as pluses involved. Just do your research, so you can make an informed decision.

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

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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.