We have blogged about this topic many times before in this payday loan blog and throughout our website. It won’t hurt to briefly go over it again.

If you need a payday loan, I recommend you skip the payday loan stores and go to an online direct lender to get a payday loan. As you may have noticed, I mentioned direct payday lenders because there are many online affiliates that offer payday loans indirectly. Affiliates usually pass your information onto  direct lenders like us. There is nothing wrong with applying for a loan with a reputable online lender. We recommend, however, searching for an online direct lender because it has the following benefits:

- You will deal with the lender directly;
- The loan process will be faster and smoother;
- Payday loans from direct lenders tend to be cheaper;
- You will establish a relationship with the lender for your future loan needs;
- You ensure your data security and information because most direct lenders do not pass your information onto others and keep it for themselves.

Payday loans continue to be in demand among Americans due to the current economy. So you will have many choices. We recommend you apply for a payday loan online with a direct lender in order to save time and hassles.

In a strange turn of events it seems likely now that even the collections industry will fall under the vast reach of power under the new Bureau of Consumer Financial Protection (BCFP), housed under the Federal Reserve.

Of course this would be yet another example of an industry that is facing new regulation in response to the economic crisis which they did nothing to create, while those responsible were left out of the new bill because it was “too difficult” to deal with at this time.

Those in the collections industry thus far are seemingly disheartened by the over-reaching regulations and quick push to get the bill approved before first understanding the impact on those industries. This is somewhat understandable seeing as collections agencies are already tightly regulated and follow strict laws and outlines defined by the Fair Credit Act, by the Federal Trade Commission. Many in the collections industry are wondering specifically in new regulations could be soon implemented without though or regard to eliminating jobs, as has been demonstrated thus far with the financial reform bill.

ACA International, the association of professional businesses and individuals involved in the credit and collection industry, will reportedly attempt to work closely with the new BCFP in order to hopefully reach a fair balance on any newly imposed regulations.

It seems that other than creating more work for lawyers, the new BCFP will certainly be eliminating thousands of jobs once new regulations are implemented to countless industries. It is very un-nerving to already see them aiming to regulate industries, such as collections, that don’t actually deal with finance at all. I for one hope this does not eliminate jobs in the long run for our friends in the collections industry, who are doing a simple, straightforward, and regulated task of collecting debt on behalf of the lender. What’s next, do we regulate the office supply stores that sell pens to banks and payday lenders?

Today I was reading a payday loan resource website that educates others about payday loans and payday loan news, and I came across a very good article on payday lenders speculation on financial reform and how it impacts their business.

Payday loan industry another industry that may face new and harsh regulations. Already, many States have capped payday loan APR’s at a mere 36%, which seems high compared to other loans, but at 2 weeks for $100 the 36% cap means lenders could only charge $1.38 which is not enough to cover operating costs.

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The author in that article expresses that how the caps on payday loans at such low levels could drive many lenders out of the business simply because their costs are a lot higher.

Despite all the legislative regulations and pressures, many payday lenders are reporting increase demand in payday loans reports online direct payday lender Cash USA Payday Loans.

That is mainly because the US economy is not recovering fast enough, as most average US families find it harder to pay bills, and deal with financial emergencies. Also credit crunch remains to be a problem as many banks and creditors aren’t providing enough credit to people in case of financial emergencies.

However many payday loan lenders, included reputable and trusted lenders like Payday Loan Trust, find it hard to help all Americans who are looking for a payday loan.

Over dozen States in US have banned payday loans, and many others are tightly regulating it to “protect consumers” from high interest loans. But many payday loan lenders argue that their fees aren’t high because their loans are extremely high risk, as their default rates are higher than any other type of lending business, which is the main reason they have higher fees to cover the costs. Also, since the loan leads are expensive to get and they are targeted for short terms, they have to raise their fees.

It seems that consumer protectionism is in these days. Everyone knows that payday lenders were not the reason for the financial collapse of the Wall Street. In fact most payday lenders, with exception of a few, don’t even trade on the Wall Street.

Payday lenders were created on the main streets and belong to the main streets. Many Americans choose to go to payday lender because they trust them more than their banks.

There is much uncertainty about future of payday loans and the payday lenders.  In name of financial reform, many States are already hunting down the local and online payday lenders. They have introduced all sort of limitations and regulations such as caps on fees, loan terms, and even the loan amounts.  Some States such as Arizona even banned payday loans resulting in over 2000 job loss.

But not that wasn’t enough, the financial reform bill also known as financial overhaul bill that was just passed by the senate and signed by the president has added more to payday lenders’ concerns because in addition to already tight State regulations, there will a series of new regulations by Federal government that payday lenders should follow, putting many lenders in particular smaller lenders’ business and their futures at risk (hence more job loss).

The payday lending industry is a very small industry already. For example most of the websites on the internet that offer payday loans  are affiliates and lead generation websites but there are only a handful of true direct lenders on line. But there is a fear of it even getting smaller due to all these new regulations and policy changes by the States and the Federal government.

There is a nice article I found on the future of payday lending, that goes through this new financial changes in detail.  There is a nice quote in that article that says “The simple truth is that we in the payday lending industry offer a much needed service at a very affordable rate.  Our customers are happy with our loans, and we fully disclose every single detail of the loan”.  The author further says “We don’t target customer” . And I fully concur. We don’t seek our customers they find us.

American are beginning to lose faith in mainstream banks and lenders. They have ridicules fees such as overdraft fees that are much more expensive than payday loans. They have fine prints that fully don’t disclose. They prey on the youth such as students and make sure they go under debt as early as possible, so banks and credit card companies can make money as early as possible, and when customers fail to pay for their mounting credit card and their secured and unsecured bank debts, they will hurt their credit in such ways consumers run out of options.

That is why people refer to payday lenders like us, to seek alternative type of loans. And that is not going too well with the banks apparently, as they have managed to use their dollars (really their customers’) and their lobbying might, to battle the payday lenders.

According to Bloomberg Business Week, 576 people in WV will get sum of $305,000 refund in payday loan fees from 10 Internet  payday loan companies that lend out payday loans illegally. Payday loans are illegal in West Virginia as there are no payday loan stores.

Important Note: This is just a news brief and only for your information. Pay1Day or or any of affiliates, are not among any of these internet companies and do not provide payday loans to residents of West Virginia.

AboutPaydayLoan.com – Many payday lenders are concerned over the forthcoming consequences brought upon by the financial bill that was passed by the Senate and signed by the President yesterday. Their concerns regard new regulations on the payday loan industry by the federal government. Many payday loan lenders, such as Payday Loan Trust, believe these regulations are too restrictive and hand too much power to the respective payday loan State. These new regulations will be counterproductive to payday loan business operations, as it will hurt their business and may result in downsizing. In the long run, a new wave of layoffs and shutdown businesses from the payday loan sector will go on to hurt the struggling economy even more.

A recent payday loan article from The Huffington Post claims that the new financial bill will put an end to payday lending because it enables banks to compete against payday lenders for short term high interest loans. According to the article, “If banks want to grow in the future, they will have to adapt their business models to serve the credit-challenged population.” In the same article they go onto say that 1/3 of the US population is at high credit risks, lending out money to high risk borrowers will only put banks at more risk.

The fact of the matter is, big banks will never be able to compete with short term lenders so long as they are attached to Wall Street. A payday loan of $100 could cost banks a lot more than a payday lender simply because of banks operating costs. Take into consideration bank business costs and overhead, their employees, and their executives salaries and bonuses, a banks will not be able to be profitable on short term loans.

The new financial overhaul is here to put caps and limits on all types of short term loans, including payday and title loans, and to curb predatory lending. It is simply wrong and naive analysis to think that this bill was going to shift the short term lending industry from payday loan lenders to bigger lending institutions like banks.

In addition, studies show that many Americans have lost faith in our banking system because they see it as a direct correlation to the downfall of the US economy. They will continue to fear hidden fees tacked on by banks even if the new bill forces them to “advertise their fee structures as clearly as a McDonald’s menu.” Americans are smart people and they know it was big banks and Wall Street that failed America back in 2008, not payday lenders.

President Obama signs the financial overhaul bill this morning. The bill is aim to protect the consumers in order to avert another financial meltdown such as the one in 2008. This bill was mainly pushed by the presidents and only needed a few republicans votes to pass the congress in order to get to the president’s desk.

While the democrats called this bill a victory, their opponents, the republicans, condemned the bill claiming it will put burden on small banks and small business. “While President Obama pats himself on the back today, families and small businesses are bracing for yet another big-government overreach that will make it harder to create new jobs,” said the House Republican leader, John Boehner of Ohio.

Under this financial overhaul, all lenders, including the payday lenders, will be more closely regulated by the federal government.

Last week the senate voted 60-38 to pass the financial overhaul bill. This bills is intended and design for tighter control the financial industry including the lenders including the payday loans lenders.

Federal government will introduce new rules and regulations on payday lenders such as caps on payday loans and fees charge. Many payday lenders think they are bing over regulated by their State and local governments such as counties and cities, and more regulations and control from federal government will only hurt their business.

Some states like Illinois and California have really tight caps on payday loans, and some US states like New York and Arizona don’t even allow them. Payday lenders claim additional regulations from federal government will force many of the lenders to either go out of business or downsize hence to lay offs. Payday lenders employ thousands of Americans across the country. They provide jobs that can not be outsourced.

For example Pay1Day, proudly, employs over 100 employees and hopes to grow except fear of new regulations will only slow down expansion of our business and process of hiring more employees.

Instead of banning and over-regulating, it would be much better if congress tries to create and promote a responsible payday lending where payday lenders would compete thus reducing their fees and etc.

In a very strange logic, the National Consumer Law Center (NCLC), in a press release today expressed concerns over new changes to the ways social security checks will be paid.

Apparently the federal government is pushing for electronic checks and\or prepaid debit cards to pay social security payments to the social security recipients instead of paper checks. And NCLC, supposedly non profit organization of lawyers claiming to be on consumer side, claims that may encourage banks and other lenders to give out payday loans or collect payday loan debt.

“Treasury must stop banks from making these high-cost, short-term loans to Social Security recipients,” said an attorney of that organization but she failed to elaborate in detail on how this new push by federal government will encourage payday loans. In fact, payday loans are not allowed based on any government checks that includes social security check, unemployment check, and active duty military checks. Perhaps this concern is for PR purposes? Only time will tell