The financial situation is tough times, gives you room if there is spare cash. Payday loan (sometimes, called check loans, cash Zenshaku, or the outright.), It is attractive to people who suffer from money problems. In handy loan that went away, some consumers who survive, but may only spread the problem. Then, by consumers who suffer from this kind problem, the federal government and some states, came to take a critical stance against the loan industry to continue this growth.
Relatively new is payday loans, offers a handy cash to consumers. Among those who are facing financial crisis, or issued a dishonored check from an economic problem, you can pay a delay payment of credit card, without being or stopped the electricity, gas and water supply, etc. and has been spread as a convenient way to live. In order to apply for this loan, consumers usually, proof of pay slips or other regular income of: The need only to present (for example, social insurance), credit check is not required. And, consumers, fee (usually around $ 100.) In loans in the amount plus, a personal check, which marks the date of the later, it passed to the lender, will receive the money of loan.
At the end of the loan period (2 weeks usually), there are three possibilities. ① lender is by cash a check, you will receive the loan total and fees. When ② lender to cash a check, if you do not have enough money that consumers pay it, check becomes dishonored, is taken a commission from banks and lenders. ③ consumers, instead of borrowing the loan, you pay the additional cost. The third option is the problem for many consumers. This loan, which is referred to as a “rolling over” in the industry, the consumer has to make Stretch ability the loan period until you can pay off the full amount of wishful to future debt at a time. However, every time you refinance the loan, consumers must pay all of the fees on the loan, you might also becomes twice the principal borrowed eventually.
The fee for cumulative went knowing of ceiling this, interest in excess of the annual 400 percent of these loans, has become a cause for concern to the payday loan. Because of these severe loan conditions, you may safeguard consumer is set by law. In some states, including New York, we have enacted legislation that substantially ban all payday loan. Arkansas recently, based on the unique state of the provisions of the Constitution that prohibits the lender to take the interest that exceeds the year 17%, abolished the payday loan in the state. Congress has voted a federal law that limits the authority to make such loans to military personnel in 2006. However, this is not a national movement, in many states, payday loan store, has become more than the fast food chain.