Why Cash Advance Lenders Exclude Active Military!
Are you wondering why Payday/Cash Advance companies refuse to take or buy leads that are active military?
Octorber 1, 2007, U.S. Congress passed the Military Lending Act that bar lenders from charging military or their family with dayday loans that will trap borrowers in debt and typically carry high annual interest rates. The Military Lending Act will only allow lenders to charge up to 36% annually for any service members and their families. The law says Payday Lenders cannot hold onto the service members personal checks or have electronic access to their bank accounts as a collateral for this type of loan. This will allow active military to get loans with higher interest than a credit card but still far below what a payday loan charge.
Many companies out there are finding ways to focus strickly on Military loans to offer them other alternatives to loans. There are many websites that are only interested in Active Military.
Many new laws are now starting to come up that are trying to restrict lenders from high rates. My personal opinion is that a payday loan is simply just that a “PAYDAY LOAN.” If you are interested in a longer loan (a few months term or more) then go to your nearest bank and apply for a personal loan, I can guarantee you it won’t be as easy as a payday loan and the interest will still be high. All these laws being passed yet its not the lenders fault that these consumers are borrowing money and commiting to pay it back by their next paycheck, then become highly upset because they are not able to pay it back. A payday loan was design just to borrow money and help you pay those important bills till your next payday.
I just wanted to let all our readers understand why there is not a strong demand for military leads. In our marketplace however, we do have a demand for them. If you have military leads bring them here, we have a source that offers alternative and is highly interested in that lead type!