ABC Cash Advance

ABC's to getting a cash advance

‘Payday Advance Loans Online’

Stepping up to the Plate for Small Payday Advance Loan Companies

As the final days wound down for the Obama administration, it was made crystal clear that the former POTUS wanted to effectively nationalize small dollar, short term loans. In fact, Obama clearly intended for this proposed lending nationalization to be a part of his legacy. However, the measures that the former administration took to effect this lending change could cause big problems for payday advance loan providers. Back in June of 2016, the efforts to hamstring small payday advance loan companies began to become clearer. That is when the Consumer Financial Protection Bureau (CFPB) released the Small Dollar Lending Rule. This rule was clearly set up to cause serious problems for payday advance loan companies. It laid out rules that would “clean up” the short term lending industry. This rule forces payday advance loan lenders to put serious efforts into determining if their customers will be able to repay their loans; like these lending companies weren’t already doing so… Most payday advance loan providers have accepted the fact that this rule is going to take effect. However, many lenders in this industry are asking for is that they not be forced to put in more effort to prove the financial fitness of their clients than lenders who provide mortgages, car loans and other large loans do as part of their loan application process. In other words, payday advance loan companies shouldn’t have to put more effort into providing smaller loans that the big loan companies do. Many industry experts believe that if the proposed rule goes through that it will eliminate 60 to 75 percent of payday advance loan locations. In fact, lending companies have indicated that they would walk away from this industry if the proposal goes through as it was originally written. There are already rules in place that stop big banks from dabbling in the short term lending market. Essentially what you have is a scenario where small payday advance loan companies are squeezed out of the industry, while big banks are blocked from offering small dollar loans. This would effectively allow supporters of Obama’s vision to… Read More

Potential Backlash in New York to Proposed CFPB Federal Payday Rules

The Consumer Financial Protection Bureau (CFPB) has been granted the official powers to act as a watchdog group over the landscape of consumer financial products. The CFPB also happens to have recently released a draft of new federal rules for the payday lending industry. Some opponents of short term lending have said that the new rules are a great start in helping to regulate (some might say over-regulate) the burgeoning consumer lending industry. In New York, though, some financial experts and consumer groups are warning people to take a stand to protect their already effective consumer protection laws. Like New York, there are 13 others states along with Washington D.C. that have laws that cap the interest rates on payday loans. Opponents of payday lending in those states have said that the caps help to prevent payday lending companies from running profitable businesses. Regulators in New York have worked aggressively to stop payday lenders from getting around their laws. Some lending companies have opened operations on tribal lands, or via websites. So far, the regulators in New York have been successful in their bid to keep payday lending out of the state, for the most part. Some payday loans do get made in the state, though. Being as some state leaders seem to detest the payday lending industry, though, these exceptions to the rule are being confronted regularly. Other states, like Missouri and Wisconsin, have more relaxed stances on payday lending. In some of these states there are more payday lending locations than there are McDonald’s or Starbucks locations. The new rules that the CFPB has proposed are not supposed to preempt any existing state laws. However, there are some powerful groups of payday lenders that have made the argument for New York to roll back the state level regulations in order to be consistent with the current federal guidelines. Opponents of payday loans in New York believe that the new federal rules are not as effective as the protections already in place at the state level. These payday lending opponents have started to rile their supporters to make the… Read More

Payday Loans are the Sole Financial Lifeline for Many People

The House Committee on Financial Services recently had a hearing to discuss the Obama Administrations maneuvering and attempts to wage war on the short term lending industry. The Consumer Financial Protection Bureau (CFPB) was created because of the passing of Dodd-Frank and has been on a mission since day one to wipe out short term, small dollar lending companies. Additionally, the bureau seeks to destroy as many of the online lending choices that American consumers currently have access to. The attack on these lending industries is a clear cut case of government overreach and just another case of the government working in cahoots with the big banking industry. People who have a grasp on credit understand that higher risk borrowers are always going to pay higher interest rates/additional fees. That’s just the way it is, and that is what small dollar lenders build their businesses upon. Those who do not like the short term lending industry seem to fail to realize that without the services these companies provide, millions of people would suffer. Getting rid of short term lending might put an end to higher interest rate loans, but it would also eliminate access to credit for millions of people. Folks who need to get their cars repaired or pay for medical bills, but who are unable to get a loan at the bank would just have to do without. That is simply not an equitable equation no matter how you slice it. Though many media outlets have been in the practice of demonizing payday lenders the simple fact is that these unique lending companies provide a much-needed service to the consumers they provide loans for. And despite what the CFPB says, the states that allow these types of loans already do a good job of regulating the industry at a statewide level. Consider the story of Robert Sherrill’s experience with payday loans. He was, in a former life, a drug dealer. He did time in prison, and sought to turn his life around when he got out. Robert could not get a good job, so he decided to start… Read More

Former Treasury Secretary a Huge Fan of Online Loans

You don’t get the chance to see someone with the credentials of Larry Summers extolling the virtues of your industry every day. But that is just what online lenders recently experienced. Summers, the former Treasury Secretary and a world renowned economist has recently shifted toward becoming a full time supporter of the online lending industry. Once Summers left the Obama administration, he took a seat on the board of the Lending Club. The Lending Club is the country’s largest peer-to-peer lending company, with a lending division known as the payment company Square. At a recent conference called Lend It 2015, Summers listed why he is so excited about the online lending industry and why he is sure that “technology based businesses have the opportunity to transform finance over the next generation.” Along the way, Summers expects tech based financial companies to help to make the economy more stable and efficient in the years to come. Though it used to be that online lending was somewhat scrutinized by everyday borrowers, the industry has recently enjoyed an upswing in popularity. Customers who have great credit and want to consolidate credit cards on lower interest rate accounts can do so easily online. And even people who have lower credit scores can make use of online payday advance lending companies to get a quick loan to help them keep their heads above water in between paydays at work. In short, the Internet and other progressive forms of technology are beginning to change the way that people borrow money for good. And Summers seems to be on board for the long haul. The Change in the Online Lending Industry Why such dramatic changes in recent years? Well, according to some experts, half of all the workers in this country either own or work for small businesses. Whether it is because of the total number of jobs or output, the economy has finally recovered. However, lending to the small businesses that have fueled so much job growth has been somewhat stagnant. Part of the reason for the lack of lending progress to small businesses has been… Read More

Studies Reveal Real World Benefits of Payday Loans

It is no secret that there are lots of folks and organizations out there that like to drag the payday lending industry through the mud whenever they get the chance. Things have become so bad for some alternative financial providers that some lenders have been forced to close up shop because of some heavy pressure from government initiatives, like Operation Choke Point. It appears, however, that there is some very real proof that there are indeed benefits to payday loans that some people don’t want other folks to know about. Two new studies on the payday lending industry cast a new, more positive light on the industry as a whole. A Law Professor from Columbia, Ronald Mann, came to some very interesting conclusions in his most recent study. Here’s just a little bit of what Professor Mann’s study revealed about the short term lending industry: The study proved that credit ratings changes for people who default on payday loans are not all that much different from the credit score changes that responsible borrowers have. The decline in credit score in the year that a borrower defaults greatly exaggerates the final effect of the actual loan default. This is because the credit scores for folks who default on their loans typically experience very large increases for more than 24 months after the year that they defaulted on their loans. In other words, the payday loan default is not to blame as the ultimate cause for certain borrowers’ financial problems. This is usually because the borrowers who do not pay their payday loans back usually have dealt with other financial problems in the past that caused their credit scores to decrease. This all goes on to suggest that defaulting on a payday loan plays a very small part in the complete timeline of distress that default borrowers experience. It is hard to bring all of this into line with the improvements that the improvements to borrowers’ financial situations come from the ‘ability to repay’ requirements that are factored into every payday loan that is provided by short term lending companies. In a… Read More

The Feds Close in on Operation Choke Point

In a move that many have anticipated for quite a while, the United States Department of Justice finally took some action to investigate Operation Choke Point. It seems this investigation/debate will also involve the Federal Deposit Insurance Corporation, so financial pundits are hopeful for some swift action. The announcement provides some sense of vindication for businesses that have been treated unfairly by this initiative put in place by the Obama administration to crack down on businesses deemed unfavorable. U.S. Representative Blaine Luetkemeyer (R-Mo.) announced that both the DOJ and the FDIC have pledged to investigate the ill-conceived Operation Choke Point. This all comes in response to communications from more than 30 Congress members to the FDIC Acting Inspector, Fred Gipson, head of the DOJ office of Professional Responsibility, Robin Ashton and DOJ Inspector General, Michael Horowitz. According to Mr. Luetkemeyer, the investigation will help to determine if any regulations or federal laws were broken and if a senior FDIC official gave false intelligence to the U.S. Congress. Operation Choke Point was originally set in motion to point out any illegal activities, like identity fraud and to punish the bogus companies doing these types of things. But instead of sticking with its original mission, this initiative has been targeting businesses in over 30 industries that the government has philosophical or political disagreements with. Industries, like telemarketing, dating services, gun and ammo dealers, and payday lenders have all been unfairly singled out and almost destroyed. Rather than actually identifying and taking legal action against illegal operations or companies that have committed fraud, Operation Choke Point has instead been putting big time pressure on banks to cut off financial services to small payday lenders and other legitimate businesses. These kinds of attacks on legitimate businesses actually threaten the people that the government and its regulating bodies are sworn to provide protection for. For example, the typical payday lending customer earns about $30,000 to $50,000 a year. These folks have not been able to get financial services from traditional banks or credit unions and depend on payday lenders and other small lending companies. These… Read More

The CFPB Issues Proposed Rules for Prepaid Financial Products

Back in mid-November the CFPB (Consumer Financial Protection Bureau) issued their proposed rules to offer certain protections under the existing Electronic Funds Transfer Act’s implementing of Regulation E and the Truth in Lending Act’s implementing Regulation Z to certain prepaid financial products. The CFPB also released the results of a study they conducted on the prepaid financial service industry. The rule that is being proposed by the CFPB defines prepaid accounts as a code, card or other device which is given for individual, households or family purposes and which also is issued on a prepaid basis to customers in specified amounts or not issued on a prepaid basis but with the potential of being loaded with funds at a later date; and that is redeemable upon presentation at merchant locations for goods or services, able to be used at ATMs or for person-to-person financial transfers. Prepaid accounts would also include payroll card accounts (given by some employers in lieu of actual pay checks or direct deposits to checking accounts) and government benefit accounts. However, prepaid accounts would not include store gift cards, gift certificates, promotional or loyalty card benefits or general use prepaid cards that are clearly labeled or marketed as gift certificates or gift cards. Regulation E Extended Under this proposed rule, Regulation E’s current definition of an account would include prepaid accounts and these protections would be extended to consumers that receive such prepaid financial products: Periodic account statements or the ability to access account information for free online. Limited liability for any unauthorized charges if the consumer promptly notifies their financial institution of any unauthorized charges that have taken place. Timely investigations and resolutions with regard to any errors that are reported. The Know Before You Owe Clause The new rule also includes the “Know Before You Owe” disclosures for prepaid accounts. Financial institutions that offer these types of financial products to consumers would be required to provide short and long form disclosures to consumers before a prepaid account of any type is acquired. And for some types of prepaid products that are sold in retail stores,… Read More

Getting The Financial Relief You Need

When you are dealing with a financial emergency, you are dealing with a situation that you want to get rectified as quickly as possible. Even if you are one of those things that likes, out of a bad habit, to put off making major decisions, when you are dealing with an issue with your finances, you need to make sure that you make a quick decision on what you are going to do to get it taken care of. Of course, just because you want to move quickly on making a decision does not mean that you want to make an uninformed decision. When you are looking for Financial Relief, it is vital that you make a decision that is going to benefit you in the long-term. While you may make a decision that rectifies the situation in as little as a couple of days, you need to recognize that you will be dealing with said situation for a good amount of time. If you owe a small amount of money on a bill, but financial obligations have left money at a premium, you may want to consider taking out a payday loan. If you know that you are going to have money to pay the bill, in full, with your next paycheck, getting your check paid on time is vitally important, especially if it is one that has a large late fee attached to it. With a payday loan, you can get the exact amount of money you need, and you can get it fast. Don’t Make A Habit Of Them Payday loans are there when you need a small amount of Financial Relief after a particularly bad financial month. If you had to spend money on a car repair, or a trip to the emergency room, there is a pretty good chance that you may need a little bit of extra money to make sure that you pay your bills on time. You won’t get thousands of dollars with a payday loan, which is kind of the point of what makes it so beneficial for people. You don’t… Read More

Getting The Most From A Loan

When you are facing a challenging financial time, a payday loan might be an option for you. When you need an exact amount of money to pay off a bill that you have due before your next paycheck, a payday loan is an option that should work best for you. One of the best things about fast payday loans online is the fact that you can get the exact amount of money you want, meaning that you don’t’ have to take on extra money. There is no such thing as “free money” when it comes to loans; every cent that you get needs to get paid back, typically with fees attached to it. With that in mind, when you need $100 fast to pay off a bill, you don’t want to take $500, you want the exact amount. This is not to say that there is no risk involved in a payday loan (there is always risk involved, no matter what loan you are looking to get), it just means that, if you are smart about what you do, there isn’t much that you have to worry about. As long as you pay the loan back with a portion of your next paycheck, you can be sure that you won’t have to deal with the penalties that are usually attached to the loan. Don’t rush into the loan, makes sure that you get all of the info that you need by taking a look online, or by visiting a professional who can help you with getting Financial Relief. Finances are stressful. More than just about anything else in your life, finances are the thing that is going to keep you up at night. It isn’t just the fear of what you are facing today, it is also the fear of what could come tomorrow. Part of being a “grown up” is understanding how to deal with your finances, and the best piece of advice that you can get it to stay “realistic” with them. If you need to stop spending so much money on entertainment and eating out, you need to… Read More

Being Smart When Getting A Advance Payday Cash Loan

It doesn’t take much to put you into a situation where you are wondering how you are going to pay your monthly bills. While you may try and take the time to put together a monthly budget and follow it as much as possible, when you end up dealing with Unexpected Emergencies and Unexpected Bills during the month, you may find yourself in a situation where you just don’t have the money that you need to pay of what you owe. As much as you like to plan out life, it doesn’t always follow plans, and a car repair bill or a trip to the emergency room can put your finances in trouble. When you are trying to right the ship, so to say, and pay off the bills that need to get in, you are going to want to look into getting an Advance Payday Cash loan. There is no reason to take on a riskier loan, especially if you know you are going to have the money you need in your next paycheck. One of the biggest benefits of a payday loan is the fact that one can get the exact amount of money that they need to pay off a bill. Typically, a Payday Loan will have a minimum of $50 and a maximum of $2500, with a person being able to get the exact amount of money that they need in order to pay off a bill. One of the biggest mistakes that a person can make when it comes to trying to find a way to get the money that they need from a loan. While it is nice to get a little extra money when you need it, when it comes in the package of a high-risk loan, well, it isn’t free, you are actually going to end up paying more money for it down the line. If you need $100 to pay off your phone bill on time, you want to make sure that you get a loan for $100. When looking to get Cash Loans, it is important to not just be able… Read More

Reasons For Advance Payday Cash

When you have Unexpected Bills to pay off after Unexpected Emergencies come your way, it is important to know what your options are in terms of getting the money you need to pay off your monthly bills. While you may have a monthly budget, most of that budget could quickly go to paying off the amount that you owe after an emergency. With this in mind, the regular bills that you have, such as your car insurance, phone bill and cable bill could be in big jeopardy. While you may consider just not paying a bill for a month or so, you will quickly find that doing this could end up setting you back financially anymore. If you need money for the bills that you have, a Advance Payday Cash loan could be the best option for you. A Payday Loan will help you get the exact amount of money that you need to pay off your bills, using your next paycheck as collateral. While there are dozens of reasons why you may find yourself in this type of situation, there are common occurrences that can leave you needing Cash Loans. Here are four such reasons why you may have to start looking for a loan: 1. Car Repairs Whether a car repair is expected, or it comes out of nowhere, you are still going to be left with paying a lot of money in terms of what you owe. While it is nice to think that you can put enough money away to keep you on schedule when you need these repairs, sometimes they can overwhelm your finances, and facilitate the need for a payday loan. 2. A Trip To The Emergency Room Even if you have a good insurance plan, a trip to the emergency room can still cost you quite a bit out of pocket. It’s even worse if you have to stay the night in an emergency room. It can give put your finances in array. 3. An Unexpected Bill You Didn’t Know You Had To Pay The second you think you have everything financially figured… Read More

Payday Cash Advance Loans-What Consumers Must Know

A payday loan or payday cash advance is a short term, unsecured loan. In many situations, this type of loan though isn’t associated with a person’s paycheck and the lender doesn’t link the loan to the borrower’s payday. Lenders use the person’s past payroll and employment records to determine if the funds will be advanced which is where the loan got its name. Most countries now regulate payday loans and, in the United States, most states have laws, rules and regulations concerning loans of this type. These laws and regulations and laws are designed to prevent excessive and unreasonable interest rates. Lenders do charge more for advance loans as the lender takes on more risk when providing funds in this manner. The estimated default rate on payday cash advance loans runs at 6 percent, according to an article entitled “On Poverty, Interest Rates and Payday Loans” published in theatlantic.com. Another study, entitled “The Profitability of Payday Loans”, estimates payday lenders lose approximately one-quarter of their annual revenue to defaults. Some lenders do differentiate between cash advance and payday loans. For those lenders which do, a cash advance is a loan which must by paid within a specified time frame, typically one month. A payday loan at these lenders must be repaid with the next paycheck. Most lenders now use these terms interchangeably though and the Federal Trade Commission considers them to be one and the same. How Does the Loan Process Work for a Cash Advance or Payday Loan? When an applicant requests funds from a payday lender, the applicant must typically provide some form of employment verification, such as a paycheck stub or a letter from the lender verifying employment. Some lenders accept bank statements as a form of employment verification. Each company determines what must be used to prove employment so consumers need to ask before applying to ensure the necessary documents can be produced. The borrower may either visit a storefront location or turn to payday advance loans online. During the application process, the lender provides information about the terms and conditions of the loan and the… Read More