Business

How Online Payday Loan Lenders Bypass State Payday Laws

If you’re wondering how payday loan lenders bypass state payday laws, keep in mind that these lenders tend to be a wily bunch. Short-term loans produce major profits for lenders. Because of this, payday loan companies often change their business models when legislators attempt to rein them in. Tom Feltner, an associate of the Consumer

Tribal Payday Lending – A New Growth Industry

Tribal Payday Lending a New Growth Industry Native American tribes across the U.S. are gaining financial footing in issuing online payday loans. While some tribal nations have the monetary resources to support their enterprising endeavors, many others are engaging in irresponsible lending practices that are illegal in most states. Protected by sovereign immunity, tribes are

New CFPB Payday Loan Rules Would Kill the Industry

The Consumer Financial Protection Bureau, or CFPB, recently proposed new regulations that are geared toward eliminating payday loan debt traps. In particular, the agency will require lenders to confirm that consumers are able to repay the funds that they borrow. The new protections will cover payday loans, specific high-cost installment loans, auto title loans and

The War on Payday Loans Begins to Look Like the War on Drugs

President Nixon fired the first shot in the failed war on drugs when he declared it “public enemy number one.” Supposedly, the reason for stepping up arrests and prosecution of traffickers and users was to change people’s drug habits, but the lesson of nearly 50 years, according to an article in the Economist.com, is that

Millions of Americans Need Payday Loans; New CFPB Rules Would Prevent That

The Consumer Financial Protection Bureau finally issued regulations that affect the payday lending industry. The new rules would require lenders to ensure that borrowers have the ability to repay their loans and limit how many times electronic debits could be presented at banks. Presenting electronic checks multiple times for payment escalates bank service charges, but

Payday Loans – Addictive as Drugs

Payday loans can be addictive because they’re readily available and easy to get, so people turn to them often when they need cash to tide them over during financial emergencies. Unfortunately, these loans were meant only for short-term, emergency cash needs and carry high interest rates to keep them available to everyone–even people with bad

With Rising Oil Prices, Could Shale Oil be Set for a Recovery?

2016 has been a time of volatility, speculation, and uncertainty for the global energy markets. During the first quarter of 2016, oil prices were at low levels that threatened the profitability of many energy firms. These price-related issues were caused by a supply glut in the global market for oil. This excess supply was partly

Why the Smart Money is Getting Out of Stocks

Despite the Dow’s record setting numbers, experts report that smart money is getting out of stocks. Smart money earned its nickname from making better decisions than average investors, so if those who are in charge of these funds are shifting their investment strategy, then everyday stockholders should consider following suit. Why is Smart Money Fleeing

Are High Interest Installment Loans any Better than Payday Loans?

Increased state and federal regulations are forcing many short-term loan lenders to switch their business tactics. Instead of offering traditional payday loans, these lenders are transitioning into providing installment loans. Are high interest installment loans better than payday loans? The answer to this question comes down to the consumer and his or her needs. What

If not for Payday Loans, Would Loan Sharks Fill the Void?

The term “loan shark” was coined in America during the latter half of the 19th century, according to an article published in the Washington and Lee Law Review. The epithet was applied to lenders offering salary advances and chattel mortgages, which were types of loans that become prominent around the time of the Civil War.

Does the Payday Loan Industry Qualify as Predatory Lending?

Critics of payday loans frequently call the industry’s lending practices “predatory.” Since there is no universal legal definition of predatory lending, it is necessary to review what financial experts consider predatory practices. Only then will it be possible to decide whether the payday loan industry is guilty of predatory lending practices. What Qualifies as Predatory

Google Kills Advertising for the Payday Lending Industry

Taking the payday loan industry by surprise, Google announced that it intends to kill advertising for short-term loan lenders. While making this announcement, the Internet company accused the industry of using harmful and deceptive business practices. Google could have a greater impact on payday loan lenders than government agencies since many of these loans begin

China’s Pending Lehman Moment Will Collapse World Markets

With billions of dollars taking their leave of the country, China could be facing a Lehman moment. If this happens, world markets may collapse. The global stock markets recently entered panic mode when shares plummeted in Europe and Asia for the second day in a row. This situation sparked fears that the global economy may

Payday Loans — Like Them or Not, They are Needed by Millions

In recent years, the payday loan industry has been receiving a great deal of attention from legislators at the federal and state levels as well as from consumer “watchdog” agencies. Politicians and agency heads have decried payday loans as “usurious” and “debt traps,” accusing cash advance lenders of “preying” on vulnerable consumers. However, whether politicians

Installment Loans – Ugly, but Necessary

When traditional lenders decided to put the kibosh on approving funds for people with imperfect credit histories, they forced those in need of emergency cash to look elsewhere for money. Because of this, installment loans are ugly but necessary. People Use Installment Loans When Borrowing Options are Slim Payday loan lending got its start in

Further Bloodletting in Store For the Shale Oil Industry

In 2014, shale oil emerged in America and Canada as an ideal substitute to foreign crude oil. By 2015, the reduced demand for shale oil greatly weakened OPEC. Unfortunately, the massive supply glut in the oil industry has kept energy prices low. While these low prices have diminished the influence of OPEC, companies in the

Installment Loans – Let the States Decide

Called by different terms that include marketplace loans, nonbank loans, shorter term lending and Internet-based loans, installment loans work differently than most payday and short-term loans such as auto title loans. These loans allow consumers — and a significant number of small businesses — to borrow amounts that range from $200 up to $5,000 and