Payday Loans UK

In an news article published today at CompareAndSave.com, a leading online financial news source in the payday loans UK operations have come under fire once again.It’s the same old story we hear all over were consumers need government to save them from supposed unscrupulous lenders. It seems that the Citizens Advice Bureau feels many of the countries citizens failed math in school and are now being taken advantage of.

“The Citizens Advice Bureau (CAB) has called on the government to tighten the regulations surrounding so-called payday loans, amid fears that many consumers are rapidly slipping into unmanageable debt. Payday loans in the United Kingdom can be a useful form of short-term borrowing for those who need a small amount of money to tide them over until their next pay cheque. But CAB told BBC reporters that levels of this type of unsecured debt have soared and that ministers should consider taking action to protect consumers.” Read more

Personally I think we need protection from politicians and high taxes in the UK, then maybe we wouldn’t need Payday Loans in the UK at all.

I was troubled to read in the Leader-Call that the city of Laurel wants the state of Mississippi to effectively shutdown the payday advance industry. All of the city’s points of contention with short-term credit lenders are, unfortunately, based on misinformation.

The city must understand that a short-term payday advance can not be fairly judged using an annual percentage rate. Payday advances carry one-time fees that are simple and transparent. Loan renewals and roll-overs are against the law in Mississippi, making it impossible to reach the interest rates quoted by our critics.

Forcing payday lenders to use the same annual rate calculation as other long-term financial products like home mortgages and automobile loans will make it impossible for short-term lenders to operate. This would result in the loss of jobs for hard-working Mississippians and will take away a source of credit for the state’s consumers.

The city based its action on a special report recently published by The Clarion-Ledger newspaper. That newspaper report included several mischaracterizations of the payday advance industry. It is certainly inaccurate to infer that short-term payday loans caused anyone to foreclose on their home.

The city is correct when it states in its resolution that short-term credit is important to the state. I am confident that if the city of Laurel takes a closer look they will find that payday advance in Mississippi is currently well-regulated and that present state law adequately shields consumers from predatory abuses.  

— Ryan Harris

Check Into Cash, Inc

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.