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!
