Leadpile’s Blog

PDL Industry Blog pointed out some lenders are thinking about implementing installment loans as a boost to their existing Payday Loan Business. These new potential regulations regarding capping the interest rate, do not appear to affect larger banks offering short term loans. The larger banks APR tends to be below the capped APR that the state is looking to implement, however the payday loans APRs are the ones that would be feeling the effects of the potential rate cap. This could be why some payday lenders are looking at new types of “loans”, where some of them have longer terms and possibly a little higher loan amounts. These sorts of changes could reduce the overall APR that the consumers are seeing. The results = the CONSUMER is happy because they got the much needed loan… the LENDER is happy because they could provide this service to the consumer… the STATE is happy because it meets all their requirements of the lending regulations.

It looks like the LeadPile Exchange will blow out another vertical in very short order! Stay Tuned…

According to MSNBC on Friday, one Illinois city is trying to get a grip on payday lenders in it’s city.  One councilwoman is proposing a moratorium on payday loan companies that are setting up shop there.  The number of payday stores in their area have nearly doubled, and they want to put a stop to that.  This city is looking to control the number of stores either by some sort of licensing or zoning to control the number of stores allowed in a particular area.  According to the article, other cities around the country have enacted these sort of regulations.  So is this maybe the beginning of this state trying to outlaw payday loans?  We will see.
Currently, there are certain states that have state specific lending laws for these payday loans. Some states have a limit on the finance charge percentage, amount the consumer can borrow, limits on the fees that a lender can charge, and if payday loans are even legal in that state.

The Leadpile Lead Exchange believes that repsonsible Payday lending is the key to long term success for both the Lenders and the Borrowers. We wish all the best of luck.