Consequences of Banning Payday Loans
With all the regulations going on with different states, I thought this was an interesting article about the effects banning payday loans had on consumers in NC. According to The Community Financial Services Association (CFSA) website, banning payday loans in the state of NC is affecting consumers. The reality is that most that are trying to get rid of payday loans in these different states, have never needed a payday loan.
Understanding fully what payday loan consumers are going through, does not seem like a reality to those trying to ban them in the different states. Do those that are trying to ban the payday loans understand what taking them away is going to do? Do they understand that some credit cards are a much more expensive option for the consumers? What are some other options available to consumers in place of a short term payday loan? Are they prepared to offer these other alternatives to the consumers, to help them get out of this temporary situation?
In the state of NC, there seems to be some effects with the fact that payday loans were banned there. According to this CFSA article, “In fact, respondents’ answers to the survey clearly show that the elimination of payday loans in North Carolina did nothing about the demand and forced consumers to replace payday loans with costly, less desirable and even dangerous options.” Overall, states with either pending regulations or those states trying to regulate, should maybe look at the overall picture of the payday loan industry. Some don’t CHOOSE to get a payday loan… they might have no other option. Leadpile Lead Exchange understands their are consumers needing a loan to fix a temporary financial situation, and we have the lenders/buyers available to provide that much needed loan to the consumers.
Payday loans are another alternative for consumers who are in a temporary bind. With the rising inability to obtain loans and credit unworthiness, people can have payday loans to turn to versus some of the alternatives. Some of the most popular alternatives include overdraft fees on accounts, recurring overdraft fees, late payment fees, credit card payments, all of which are typically more than a one-time payday loan fee. In addition, as mentioned, eliminating options only backs consumers into a corner and often results in the elimination of more jobs, which this economy cannot afford.
1Take a look at this scenario and learn from this event, which happened in Texas. The general public at times finds it annoying when couples insist on bringing their infant along on their outings, such as restaurants, movie theaters, and undoubtedly more so when they bring baby along for a robbery. Can you just imagine how terrifying it is both for the mother and the infant she is carrying to see herself on that situation? Yes, folks, that’s right, some joyful family unit down in Texas brought their infant along for an armed robbery of a payday loan store in the Lone Star State. This not only added to a growing number of payday loan store robberies, it added a nearly surreal element of bringing along their infant child that will no doubt grow up in foster care since the parents will be going to prison. When most people think of fun for the whole family, armed Couple Brings Baby to Payday Loan Store Robbery isn’t what most has in mind.
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