Payday Review: Guiding Customers To Legal Payday Loans
Payday Review (www.paydayreview.com) offers a unique and new service to persons using payday loan services. By offering legal facts on each state they made it easier for consumer to get informed and decrease the chance of being exposed to illegal practices.
(PRWEB) June 14, 2005 -- Short term loans, or payday loans as they are
popularly called, have gained wide appeal in the past few years. They target a
large market not covered by the traditional banks where people are in need of a
quick fix to their cash problems. As this service often does not require a
credit check and is fast, it targets people living from paycheck to paycheck.
These consumers generally do not qualify for a personal bank loan and do not
possess credit cards. Payday lenders can then charge extremely high fees for the
convenience of quick and easy access to cash. While some states have a maximum
annual interest rate anyone can charge for a loan, other states allow lenders to
determine a rate at their own discretion; resulting in annual fees sometimes as
high as 500%. Although the fees seem relatively manageable at $15-30 for each
$100 loan, this translates to an annual interest rate of 180-360%!
Even
in states where the annual interest rate is capped at a specific value, lenders
manage to charge upwards of 300%, in most cases by masking the costs as
“administration fees”. Payday Review states that the most common illegal payday
loans are of this type where the lender uses additional fees, such as
“administration costs”; to increase their profits by working around legally
allowed interest rate maximum. This is called usury and covered in state laws
where payday loans are legal. In some states these short term loans are illegal
and there some providers get around the legislation by offering loans small
enough to fall outside of the legal framework of that state.
Payday
Review warns for other short term loan providers who fail to make sure you can
repay the loan and use intimidating practices, or outright threats, to force
repayment. Any legal loan can become illegal if the lender knowingly intimidates
the consumer and him to become more in debt due to these unfair practices.
With conflicting laws and more short term loans available than you need,
it is extremely hard for consumers to become educated regarding the legalities
of these loans. Not knowing where to turn to for information, and with many
illegal lenders, it can be a dangerous arena for the customer. This is a problem
Payday Review solves with their state by state legal information. Payday Review
gives customers the tools they need to find a legal loan provider and recognize
when they are taken advantage from.
In the US each state decides on its
own laws and as such legal aspects can be confusing as they can be completely
different from one state to the next; “What is legal in California can be
completely illegal in Alaska,” according to Payday review.
Payday review
offers an extremely useful service to consumers who could previously more easily
be exploited by lenders. By organizing all relevant laws for each state
borrowers have a chance to look for specific information pertaining to their
location. Payday review is a division of Ropage Group and based in Glendale, AZ.
Anybody looking for a quick fix to their financial trouble can avoid borrowing
worries with Payday Review’s service.
Contact:
Geoff
Anderla
602-284-5527
e-mail protected from spam bots
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Source : http://www.prweb.com/releases/2005/6/prweb250690.htm