Did you make a mistake and take too many payday loans specially from those expensive lenders that didn’t explain you exactly how much would your loans cost? Did you have too many financial emergencies and as the result you were forced to take payday loans and other type of short term loans such as title loans and now you are unable to pay them back?
Do Not Lose Hope – Contact Your Payday Loan Lenders
Payday loan lenders understand the risk of the business they are in and that is why they try to help you out when they can. For example Solomon Finance’s collection and legal department is always open to new ideas and payment plays and even reducing extra fees and interest charges so as long as the company doesn’t offer loss.
We also advise you that DO NOT CONTACT DEBT CONSOLIDATION COMPANIES for payday loans. Most do not help you much. All they do is that they represent you against the lender, and all they do is that they negotiate a payment plan and charge you monthly fee for their services but that is what you can do anyway.
Continue talking to your lenders and creditors. First call them and try to explain them your situation, then write to them an official letter if calling doesn’t work. If you need help writing a letter, there are a plenty of debt consolidation sample letters online you can find.
So what are you waiting for? Get up and take charge and do something about your financial future. Also remember that as a direct payday lender, we have freedom to work with our own customers and help them to pay back their loans so if you have any difficulty paying back your payments, contact us and see how we can help you.
More tax codes, more fees, more paperwork. That is the latest news for small businesses. From one end, we hear the White House wants to create jobs by aiding small business in forms of small business loans and even payroll cuts, but we see actions that are contrary to that which is a massive health care law that requires more paperwork for small business.
When the republican governor of California, Arnold Schwarzenegger, was elected, he had promised that he would cut State spending and help private business grow and it seems that he was able to do just that but apparently not to benefit of the residents of California but the California’s banks and credit unions.
According to an article on Bloomberg, Banks and Credit Unions in California will now offer zero interest loans to over 200,000 State employees whose salaries maybe reduced to minimum wage.
“We’re trying to show our support for our state-employee members,” claims Golden 1 Credit Union’s Donna A Bland.
But are they really? Anyone knows that by reducing one person’s employee and offering them loan, even a zero interest one, only means trouble. It keeps them under further debt, takes away their ability of paying back the loan or living paycheck to paycheck, which makes them more vulnerable financially for more loans. And when they run out of 0 interest loans, then they start taking interest based loans and even high interest loans including short term loans such as payday loans.
Following operation sunset that banned payday loans, over 600 payday loan stores had to close according to an article on Arizona’s local paper TriValleyCentral.
According John Rabenold who is a a spokesman for Check ’n Go’s corporate offices, this new ban is “devastating.” He further said, as a result of the new law, we are closing up shop and going elsewhere.”
“This is going to hurt the state more than it helps it. Now state has to worry about over 2000 unemployed residents and that’s just the short term effect. Imagine how many more jobs will be lost indirectly as results of this. All vendors that worked with these payday loan stores now are going to lose a ton of business and as the result they might have to be forced to downside too” said, a payday loan consultantthat works with various payday lenders. His major clients in Arizona such as Payday Loan JR and All State Payday Loan, had to close shops right after they got their license for Arizona, right before payday loans got banned.
He further said, instead of banning payday loans that resulted in job loss, I would like to see politicians to help economy grow by providing more jobs, better paying jobs, so there would be less demand for payday loans as the result they would come by much cheaper.
Payday loan lenders or any lenders who do their own collections don’t have to comply with FTC’s FDCPA regulations according to this article from a payday resource.
FDCPA act is to protect consumers from aggressive collectors. It sets guidelines and regulations on how the payday loan collection calls must be made and what information can be discussed on the phone. For example it disallows the collectors of leaving specific message on customers voice mail regarding a specific phone.
However those rules are regulations seem to apply only to third party and collecting companies collecting debt on behalf of other lenders. If a payday lender, or any lender or creditor, contacts its own customers regarding a loan that lending organization gave to its customers, then the FDCPA doesn’t apply to them according to that FTC act.
How to Avoid Collection Calls
Although there are FDCPA and other regulations and solutions to protect consumers from receiving bad collection calls, it is better to avoid them at all cost. And that can be done by paying your bills on time. If you are unable to pay back your debt, worst thing is to ignore your lender. Call them and tell them about your honest situation and your financial issues. Work out a payment plan, do something which is better than nothing.
And remember, if you don’t really need that loan, don’t take it.
So you think Wal-Mart is only a giant retail store that sells just about everything? Think again. According to MyBankTracker, Wal-Mart will be launching a bank in Canada very soon with a Wal-Mart credit card as well as they are a full licensed bank in that country.
Apparently back in 2007 the company tried to get into banking in US but was unable to secure a card processing center in Utah that would handle the store credit card services.
Bad for Banks
If Wal-Mart starts offering financial services directly, they can be a huge threat to US banks specially the small banks and credit unions. Wal-Mart already is into check cashing business that cashes checks for a very small fee cheaper than other paycheck advance stores. Also they have a money card where many people use to take a payday loan. Offering other banking services, in opinion of some, could trigger unfair competition that could put local banks and financial institutions offering the similar services out of business or push them to corner where they have to cut costs and lay people off.
Good for Consumers
If Wal-Mart becomes an actual bank with its own credit cards, as opposed to their current model where they partner up with other financial institutions to do that, then in theory that could costs for consumers as Wal-Mart can offer its products even at lower price. Credit card and debit card fees are very expensive for merchants even the ones as big as Wal-Mart. Also charge backs and fraudulent credit card activity ends up costing retailers the most. By becoming bank Wal-Mart also hopes they can reduce these problems.
That means consumers can buy items for cheaper from Wal-Mart, and perhaps even take loans including payday loans for cheaper. That would cause other banks and lenders to be competitive to offering more affordable solutions to their consumers and at the end consumers will win.
As a direct online payday loan lender, we find it necessary to educate yourself about payday loans. Payday loans are not for everyone and certainly should not be used as permanent financial solution but as last resort where all your other options are exhausted. And you should not take a payday loan for more than you need or for more than you can afford.
Many customers were not educated about payday loans and they were under a lot of debt. Always educate yourself about risks of payday loans and know the pros. and cons. Below is a video on “The Hazards of Payday Loans”
As we have have several posts regarding Arizona putting an end to payday loans, many existing payday loan consumers have become frustrated specially with lack of alternative options. Below is the comment of the day we found on an Article on AZ Family.
Ok, it’s a women’s right to choose to abort her child, but she’s not responsible enough to make a $50 financial decision…the cost of a $300 payday loan? Seriously, do you think all these customers are irresponsible and stupid? Could it be that payday loans make more sense than other financial alternatives? Could it be the customer can easily afford a payday loan, and the $50 fee is a good trade-off for him/her? There are payday loan stores are more corners than McDonalds…do you think you are so much smarter than tens of thousands of people and they all need your great wisdom? Speaking of McDonalds, maybe we should limit people to one big mac every week because too many people are fat. Maybe See’s Candy should be closed down b/c chocolate causes too many cavities.
Be advised that many so called “debt collectors” or “law firms” are calling our customers and other payday lenders asking to collect payday loan debts on Pay1Day.com, or other lenders behalf.
One of our affiliate payday lenders, Extra Cash NET USA, has been experiencing the same problem where other collection companies have called and asked them for payments.
Please be advised that Pay1Day has its own collection and legal staff in house. If you ever get a call from any other source than Solomon Finance, do not make a payment to them. Contact us and make sure you are indeed making the collection to us.
So they made payday loans go away in Arizona, but did they make the need for payday loans to go away?
“Nobody paid any attention to, what’s a better alternative to payday loans,” Lee Miller, General Counsel for the Community Financial Services Association said.
“Rest assured that while payday loans may be going away tomorrow, that the need doesn’t go away tomorrow and we’re going to have to find a way to fill that need,” Miller said according to this article.
The bottom line is that when politicians ban payday loans, they must be driven by other purposes, other than protecting or helping consumers because such bans without offering alternatives only helps the consumers.
People take payday advance loans because they don’t have many other options. They don’t have family that can lend them money or they are not affiliated with any local religious or organization to help them with their short term cash needs. Not to mention that even if they were affiliated with religious organizations such as churches, it would not be as fast or easy to get a loan from those organizations because they are often run by part time volunteers not full time professionals.
