Find compromise on payday loans

Payday loan companies are feeling the uneasy pressure that comes from too much attention from the wrong people — Congress.

The payday companies that have operated pretty much out of the public and Congressional spotlight are now right in the middle of it and fighting for their survival.

But should those high-interest, same day loan companies survive at all? Should Congress step up and regulate the controversial loan outfits or just oversee the operations?

The payday loan outfits need both — Congressional oversight and regulation — and even with that, they should be allowed to continue to meet the expectations of the neediest borrowers without financially devastating them at the same time.

The payday loan operations have stepped up pressure on Congress to let them run their business as they see fit. The Online Lenders Alliance was formed in 2005 and quintupled its lobbying expenditures to $480,000 for 2007 and 2008 elections.

In the Senate, Sen. Tim Johnson, who is on the banking committee, was the top recipient of lobbying dollars — $6,900 — and in the House it was Rep. Luis Gutierrez, D - Ill., who received $4,600.

“While they may not be JP Morgan Chase or Bank of America, they’re very powerful. Their influence should not be underestimated,” Gutierrez, who shifted from promoting a ban on the industry to promoting regulations, said.

Sen. Johnson advocates oversight of the industry and is taking a wait and see approach on regulation proposals.

Payday loan companies say Congressional regulations will mean and end to their business and hurt the people Congress is trying to help — the lower income wage earners who find themselves in need of a quick quid.

But Congress acknowledged the high interest rate loans were a problem when, in 2006, they capped interest rates at 36 percent for military personnel. And in South Dakota, the state Legislature regulates the industry with a cap on loan amounts and other restrictions.

For the public, the debate often comes down to personal responsibility versus preying on the needy.

But the truth probably lies somewhere in between and we hope Congress can ferret it out, regulate the industry and meet the needs of the people who have no other options.

Payday loan operations fill a void. Until any person can walk into a traditional bank or credit union and borrow $100 until his or her next paycheck, payday loans will remain the only option for a lot of folks. We can support keeping the quick and fast payday advance; but some protection against an exploding, long term debt problem should be part of the equation.

News source: rapidcityjournal.com

Below are the monthly archives:

Terms and Conditions apply. Finance charge will be between £10 and £15 per £50 borrowed. Fees displayed are typical but cannot be guaranteed. Your actual rates may vary based on your circumstances and the lender we select. Representative APR (Annual Percentage Rate of charge): 1355% to 3762%. The APR includes important factors such as the interest rate you must pay; how you repay the loan; the length of the loan agreement (or term); frequency and timing of installment payments; and amount of each payment. Loan amounts are based on consumer's credit history and ability to repay loan. Funds will be deposited the same working day, if approved by 14:30. Approval may take up to 30 minutes in most cases. Payday advances should be used for short-term financial needs only, not as a long-term financial solution. Customers with credit difficulties should seek credit counselling.

PayDayFinancial.co.uk is not a lending or banking institution and it does not broker loans to lending institutions. The personal information you provide will be provided to a third party lender to provide you with a loan application and the potential to receive a loan. PayDayFinancial.co.uk makes no guarantees or warranties with regards to the availability of a loan or any other aspect of the terms and conditions of the lending institution. This web site places no value to this service. For details, questions, or concerns regarding your unsecured cash loan please contact the lending institution directly. Not all lenders can provide up to £750. Cash transfer time may vary between lenders. We assume no responsibility for the services or information you may receive from the lender. All loans are subject to credit approval. Certain limitations apply.

Disclaimer: As a condition of extending credit, some lenders you may be matched with may run a credit check from a major credit reporting bureau.

PayDayFinancial.co.uk is a trading name of 9Global, Inc. Registered Office: Communications House, 26, York Street, London, W1U 6PZ. 9Global, Inc. is licensed under the Consumer Credit Act 1974 / Licence number: 0620071 and the Data Protection Act / Registration number: Z1419480