Fees Associated With Payday Loans
Time is running out for consumers to read up on all the popositions being presented to them on the November 4th ballet. One thing that is being voted on in the states of Ohio and Arizona, is in regards to payday loans. How much does everyone really understand about payday loans? One myth I thought very important to point out:
Myth: Payday lenders hide fees and mislead consumers.
Fact: Just like any other service or loan you obtain, there is a cost to do get that loan or service. In addition, any payday loan you take out there will be a cost to taking out the loan. According to the CFSA website, “The cost of a payday advance is fully disclosed to customers on signs in the stores and in disclosure agreements. Moreover, in accordance with the Truth in Lending Act (TILA), the terms of the loan are clearly outlined in the lending agreement. Payday advances involve single, flat fees and there are no hidden charges, balloon payments or accruing interest. CFSA members also provide an educational brochure emphasizing responsible use of the product and offer a free right of rescission should the customer change their mind.”
CFSA also went on to say that in a recent survey 96% of the people were aware of the fees associated with taking out the payday loan. Just like with any other loan, there are documents presented to the consumer with all the fees of doing the loan in black and white. Are people sometimes just so anxious to get a loan, that they do not take the time to read the documents they are signing?
Leadpile Lead Exchange wants consumers to read everything before agreeing to take out a payday loan, or any other loan. Knowledge is power!
Absolutely and thank you for taking the time to dispute this myth. CFSA supports regulations that ensure the product is used responsibly and we are doing our part to encourage responsible use. We want customers to use payday advances wisely and we want the service to be a solution, not a problem, for individuals who need low-dollar, short-term credit. Indeed, a payday loan may not be the best choice in every situation. To that end, CFSA member companies have taken a significant step forward in our ongoing commitment to responsible lending.
CFSA has made significant changes to the Best Practices, including: displaying fees in large font on posters in all store locations and on their web sites; offering payday loan customers the option of an Extended Payment Plan if they cannot repay their loan when due; placing a “Customer Notice” on all CFSA member-company advertising and marketing materials; banning advertising that promotes the payday advance service for frivolous purposes; requiring CFSA members to prominently display the CFSA seal to help customers identify responsible providers that adhere to these and other CFSA Best Practices.
This is part of our ongoing effort to respond to the concerns of policymakers and protect the financial well being of our customers.
1Forget if you agree with pday loans or not- FOCUS on the fact that the Ohio General Assembly thinks they have the right to control what financial products are available to the citizens of Ohio. Big brother style.
Forget if you have used a PD loan or not– FOCUS on the fact that other consenting adults do and are capable of making their own decisions, based on their individiual situations. Who are we to say no, you can’t use that credit card? Or no you can’t use that bank?
Forget everything else — FOCUS on the fact that eliminating payday loans DOES NOT eliminate the need for short term financial options. I bet 99.9% of the OGA doesn’t have to worry about the day to day necessities the rest of are dealing with. They have insurance, pensions, well paying jobs.
Forget about the Pday loan argument — FOCUS on the controlling and spending of our household money by the state. Considering our current economic situation… I vote for less intrusion!! PLEASE let me manage my own darn $$ since the gov’t has shown they are not responsible, accountable or budget conscious. Ohio>> 60M in debt!!
Forget about the Pday loan side– FOCUS on what else the government is going to decide in the future (under the guise of “paternalism”) that we aren’t capable of handling as adults. Restricting how much can be spent on food? alcohol? cigarettes? housing? gambling? clothes?
FOCUS on the fact that the OGA is intruding on our personal financial decisions… where does it stop?? Why do they think they know better what will work for us than we do? We live it every day!!!
The Issue of 5 is waaaay bigger than PD Loans >> its about Financial Freedom of Choice, which I consider to be a BASIC FUNDAMENTAL RIGHT!
***NO on ISSUE 5!****
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