Spartanburg, South Carolina - Advance America has pasted it’s third quarter earning for 2011 which are up ten fold from the same time last year. The company said its net income for the quarter was more than $14.5 million, compared with $1.4 million during the same quarter last year. The first nine months of the year has seen Advance America’s net income more than doubled to $41 million, compared with $20 million during the same period a year prior.

These higher earnings are not just being reported by one payday loan company – most are reporting higher than usual earnings. The reason for these higher than expected earnings is actually not just the economy, but rather the bank rates which are now being charged. Banks have many fees associated with accounts which range from check fees to overdraft charges. Many banks require a minimum ballance to avoid additional fees, and the list goes on.

Credit unions have also seen an increase in business with the banks upping their rates to an all time high. With many Americans now having bad credit, payday loans or credit unions are their only alternative. The FDIC has surveyed data showing one-third of South Carolina households and one-quarter in North Carolina either have no bank account at all or use payday lenders for their financial transactions.

The FDIC’s consumer survey also found 31% of U.S. households that dropped a bank account did it because they didn’t want to pay fees or couldn’t maintain the required minimum bank balance to avoid additional charges.

UK loan specialist Payday Express has hit back following press reports accusing firms offering short-term credit of being “legal loan sharks”.

The payday lending industry is notorious for receiving derogatory comments in the newspapers because of their high APR. Reporters like to point out the percentages, which are usually in the thousands, as if they are actual interest percentages, which according to Payday Express is completely misleading.

Ashleigh Preston, Marketing Manager at Bromley-based short-term loan company Payday Express, professes that it makes no sense to talk about APRs when discussing short-term loans, since APR is an annualised measure.

She said: “Quoting the APR for a short-term loan is pointless as it offers no clear comparison between a loan due to be paid off in full after a month, and a loan that is paid off with a series of payments over the course of a year.”

“While you’re likely to find that the APR for online payday loans is significantly higher than for longer term credit agreements, the actual amount of money you repay can be much less since the loan is repaid in a matter of weeks rather than over the course of a year or more.”

Preston said Payday Express is a responsible lender offering a valuable service to people who need payday loans in the UK. A cash advance will often work out cheaper than paying unarranged overdraft fees and is often a vital lifeline for people who find themselves in need of temporary credit.

About Payday Express:
Payday Express is one of the UK’s leading payday advance loans specialists and has been helping people across the country get access to short-term credit since 1999. The company is committed to responsible lending and provides customers with a discreet and reliable service that will cover their short-term credit needs.

For further information contact:
Email: info@paydayexpress.co.uk
Website: http://www.paydayexpress.co.uk/

This is the new way in which America is trying to clean up its financial problems. Everything from student loans to reverse mortgages and even payday loans will come under scrutiny by the CFPB

Many students leave school with an enormous amount of debt. While the government does back many loans each year they are not usually enough for the student to survive on and therefore they borrow privately. Many of these private loans may have low initial interest rates until the student graduates and then jump significantly afterwards making the loans difficult to repay.

Reverse mortgages are another problem area the CFPB needs to look at. A reverse mortgage is simply a loan using your home as collateral. These loan companies focus on how much money you can draw from your homes collateral, and for how long. There are many hidden fees and high interest rates which are never discussed which eats heavily into the homes equity leaving very little if anything at the end of the term.

Payday loans are also on the list of financial problems facing the CFPB. While everyone expects to pay higher than normal interest rates for payday loans, they don’t expect the additional fees if the loan is not paid off in the prescribed time frame.

Read related story in USA Today. www.usatoday.com

and in the Wall Street Journal www.online.wsj.com

Payday loan interest rates are nothing compared your banks overdraft charges.

If you us  a debit card your bank has probably made an offer recently they don’t want you to refuse. The banks want you to agree to continue with its standard overdraft practices.

The banks are not doing this just to be nice and keep you informed. After many years of complaints from consumers, the Federal Reserve finally came to the decision that some consumers were harmed because banks were routinely allowing purchases or ATM withdrawals that pushed customers into debt by allowing an unauthorized overdraft, and then charging the user for it.

Banks realized that there was big money to be made by blurring the line between debit and credit cards. Debit cards allow you to make payments with your own money, rather than borrowing from the banks.

Now the Federal Reserve has decided consumers are  entitled to know when they are borrowing. Many debit cards used for everyday purchases or withdrawals can incur  overdraft charges that could cost you $35 or more.

If you’re careful type, or quite sure you will only use the overdraft feature once in a while for unexpected expenses, then the overdraft charges may not seem to be such a big deal. These rates being charged by banks are far in excess of rates charged by payday loan companies.
Debit cards are a great way to avoid spending money you don’t have. If you want credit, get a credit card. If you want a loan you should at least be told up front what the charges are.