Payday Loans Becoming More Transparent

Payday loans are in demand. Every years millions of dollars are handed over from these loans. The tough economic times and incomes shrinking, it is no surprise to see an increasing number of people depending on these loans time and again for any emergency. The figures suggest that payday borrowers having quadrupled in the recent years. These loans are more in demand in countries like the US, UK and Australia. But one needs to be careful and only take these loans out when absolutely required and  pay them back on time as these carry higher  interest as compared to other loans.

Every country and state has their own terms, rules and regulations regarding Payday loans. With the burgeoning of this billion dollars industry, there is a clear need of some rules and regulations. There is an urgent need of an improved transparency so that the borrowers have a clear idea as to what they are getting into. They should be well aware of the exact interest rate and penalties of late repayment.

There must be a limit too on the number of times one can take out these payday loans. Many greedy lenders make those vulnerable borrowers their victims and thus sway them into a vicious circle of debt. The borrower needs to get an education on these loans and how to make the right choices for himself. After all, the purpose of these loans is to get out of a cash crunch and not get engulfed into a deep hole of debt.

The government can also limit and check any continuous payment authority orders on the bank accounts of the borrowers. The debt-collection charges should be capped and the regulator needs to be given the power of imposing bans on harmful products. We need a stable and a quicker system for shelving the licenses of any fake or dishonest payday loan companies. A limit should be set for interest rates of the different kinds of loans. The Government should also look at providing other source of easy funds to the borrowers as an alternative.

Payday loans are not bad but many providers are taking undue advantage. It is a joint effort that will keep everything running fair and in order. A higher transparency in the system will reinforce faith among the borrower and his lender. The borrower too will learn how to make best use of the loans and how to abide by the rules of the game.

Market transparency leads to the customer making better choices and remaining well informed. It also discourages dishonest behavior and promotes intelligent choices among customers. The consumers should be kept abreast of new options and made aware of any other cheaper alternatives of getting funds as compared to Pay day loans.

Payday lenders should be reviewed and ranked regularly. Borrowers should be aware as to which are the highest scoring lenders because they are getting great scores due to their good behavior and higher transparency.

Here is some resources where you can obtain payday loans:

–         www.WeAdvice.com

–         www.411ForCash.com

–         www.800PaydayLoans.com

–         www.FastLoanTree.com

 

About the Author:
The guest post was brought to you by 411ForCash.com

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Tags: Business, Credit history, Debt, Financial services, Interest rate, Loan, Pay Day (board game), Payday loan

Category: Loans