Predatory Lending: Payday Loans?
In the last year many mortgage lenders have been closing their doors. Auto lenders are getting “selective” on who they lend to. Payday lenders are getting put under a microscope because of various features of their loans. There is not one consumer that is not somehow being affected by this credit crunch. Is any of this happening because of the side effects of predatory lending?
In recent years, industry regulators have had an eye on every sort of lender in regards to potential predatory lending. According to Payday Loan Industry Blog, predatory loans are those that were given out to consumers with deceit or misleading information. This could be related to the terms of the loan, the type of loan or anything else related to the loan and what is conveyed to the consumer. In addition, predatory lending could be where a lender is taking full advantage of the consumer. Predatory lending is not necessarily because the interest rates are high or the cost of doing the loan is expensive. Some try to refer to payday lending as predatory lending.
Payday loans are a loan that many need for a temporary loan to get through a unforeseen situation that has occurred. These loans are usually about $500 and secured by a person’s paycheck. Payday loans being a part of the predatory lending arena should not necessarily be the case, because consumers are conveyed the rates and the cost of doing the loan. However, if a lender does not do this or misleads the consumer, then that could be considered predatory lending.
The bottom line is no matter what kind of loan you look at taking out, you need to ask a lot of questions. Understand fully the cost of doing the loan. The more you try to find out, the better chance you have of not becoming a victim of predatory lending-it’s everywhere, not just with one type of loan.
Leadpile Lead Exchange works a lot with payday loan leads, refinance leads, auto finance leads and other types of lending leads. However, predatory lending or misleading consumers is not something that we promote in our marketplace.
What happened to financial accountability instead of finding a source to blame? TAKE a CLASS people–its disgusting how this generation thinks the OPTIONS to loan are the reason for poor spending and financial choices. Take control of your life and your choices–stop blaming everyone else.
1VOTE NO!
2Pay day loans have provided a very good sevice for
those in need of them.
Don’t be ignorant when it comes to the payday loan industry, mainly because you never know when you will fall on financial hardships. If you fail to educate yourself on the ins and outs of the industry you might very well miss out on an opportunity to pick yourself up out of your financial troubles. Some of the politicians in Washington choose to ignore the fact that a payday loan can help restore your credit and put you back on the road to financial success. These politicians have even had the audacity to create legislation that would ban the industry all together. It’s clear that they don’t care about the people that the industry has helped or the employees in the industry that would all lose their jobs. They tend to question the ethics of the payday loan business, but I question their ethics!
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