Payday Loan Market Shrinks 23% in 2016

Storefront and online payday loans decreased 23 percent in 2016, according to information released by the Center for Financial Services Innovation, also known as CFSI. Some of the decline is due to payday loan borrowers shifting to bad credit installment loans or other subprime credit products. However, the CFSI study also revealed some alarming statistics

How a Trump Presidency May Help the Cash Advance Online Industry

The cash advance industry has been under fire for several years. Critics charge that the rates are excessive and that borrowers can become trapped in a cycle of debt. In June 2016, the Consumer Financial Protection Bureau released its proposed rules to regulate lenders how offer payday, title, personal installment and cash advance loans. The

Good Budgeting Eliminates Need for Costly Online Installment Loans

There are many kinds of online installment loans, and these include bad credit installment loans for people with low-to-medium credit scores. Loans can prove to be lifesavers when financial emergencies arise, but they often carry high interest rates. Over time, the extra money that you spend servicing your debt can easily generate severe financial difficulties,

Bounced Check Fees Exceed Cash Advance Loan Fees by Billions

Bank overdraft fees have begun drawing more opposition than cash advance loan fees because these unexpected costs often trap consumers in cycles of debt. According to an article posted at Chicagotribune.com, overdraft fees often lead to additional bounced checks, and the costs multiply out of control. Many consumers face impossible challenges to cover these costs.

CFPB Aims to Eliminate the so-called Payday Loan Debt Trap

The payday loan industry actively tries to trap people in cycles of debt that the Consumer Financial Protection Bureau is attempting to eliminate, according to a recent article posted at Consumerfinance.gov. A payday loan is typically a short-term loan of between $100 and $500 that consumers can easily obtain when they need small amounts of

Overdraft Fees of up to 17,000 Percent Make Online Installment Loans Look Cheap

A recent analysis conducted by CNNMoney and SNL Financial found that three of America’s largest banks, JPMorgan Chase, Bank of America and Wells Fargo, made more than $6 billion from just overdraft and ATM fees last year. The excessiveness of the fees caused so much frustration throughout the country that they became an issue during

So-Called Holiday Loans are Simply Payday Loans Under a Different Name

The holidays are a stressful financial time for many people. During the Christmas season, expenses start to escalate due to the need to pay for travel, parties and gifts. When unplanned expenses put a strain on the budget, Christmas loans may become a tempting option. However, these so-called Christmas loans are simply payday loans under

Online Cash Advance Loans Rife with Fraud, FTC Warns

Cash advance loans advertising quick money is a temptation for those who are experiencing a cash shortage. However, online cash advance loans are rife with fraud, FTC warns. According to the Federal Trade Commission, lenders don’t always follow regulations. They violate the law by lying about fees and by requiring cash advance borrowers to give

A Payday Loan Make the Holidays Even More Expensive

If money is tight during the holidays, then using a payday loan to cover Christmas costs is tempting since the lending option gives borrowers access to hundreds of dollars. However, payday loans make the holidays even more expensive. High fees cause the interest rates for payday loans to escalate to outrageous levels, increasing the price

Pawn Shops Offer a Cheaper Alternative than a Payday Loan

Pawn shops tend to get a bad rap. These businesses are often lumped into the same category as payday loan and auto title loan lenders. However, pawn shops are a cheaper alternative than payday loans. Pawn shops operate by giving people loans with personal property as collateral. Many shops allow loan borrowers to repurchase their

A Personal Slush Fund for when You Need Money Now

An unexpected expense can wreak havoc on your monthly budget or leave you scrambling to find a way to cover the bill. However, according to a report appearing in USA Today, many Americans do not have the savings to cover an unexpected expense of $1,000. Approximately 75 percent of households earning less than $50,000 per

Overdraft Fees Add Hundreds to the Cost of Payday Loans

Borrowers who take out payday loans should understand that it’s critical to be able to repay these loans as agreed, or they could face high overdraft fees and additional interest charges for financing their loans for longer periods if the money isn’t in the bank to cover any scheduled payments. Unfortunately, payday lenders don’t control

Cash-Strapped Students are Turning to Cash Advance Loans

With cash-strapped students turning to cash advance loans for financial aid, it’s time for government agencies to do some soul searching. While short-term lending provides immediate relief, it also results in students falling deeper into debt. Recent studies and surveys confirm the depth of this problem. Broke Students are Searching for Financial Aid from Cash

Rules Curbing Cash Advance Loans in Republican Crosshairs

Sweeping reform in the direction and tone of congressional legislation is increasingly likely under unified Republican control of the executive and legislative branches of government, and one of the biggest items on the conservative agenda is replacing Dodd-Frank and the CFPB’s regulations of cash advance loans and other financial products. Rep. Jeb Hensarling, who chairs

How Online Payday Advance Lenders Bypass State Laws

Payday advance lenders face increased regulations and a challenging job in trying to reform the industry’s image under increased regulatory efforts at the state and federal levels. Many responsible lenders are working within trade associations and trying to comply with new regulations from the states and the CFPB, but maverick lenders paint all short-term lenders

Providers of Online Installment Loans Face Continued Scrutiny

Online installment loans face increased scrutiny that also applies to payday lenders, banks, credit unions and alternative lenders such as Native American lenders who don’t necessarily have to follow state and federal regulations. The intention of the Dodd-Frank Act of 2010 and its creation of the Consumer Financial Protection Bureau was to protect families with

Does the Convenience of a Cash Advance Online Justify the High Price?

Few financial services have raised as many issues and concerns as getting a cash advance online, but what are the facts? The payday loan industry makes these loans available to most applicants who don’t abuse the process or default on their loan obligations, but critics have attacked the industry because of its high interest rates.