Archive for the ‘Payday Loan News’ Category


What Do You Need To Get A Cash Advance Payday Loan

Posted by Emily

There is much information online that can be found out about many different subjects on the internet.  However still there is a question that continues to be asked.  What do I need to do to get a cash advance payday loan?  While the payday lending industry has been growing due to the strong need of this service for Americans all over the country, many are still new to actually taking out a payday loan.

Some may have previously viewed payday loans as a loathed service or a predatory business only for the lowest type of people.  But that is far from the case.  The industry has become much more stable and it is possible to find direct payday loan lenders who are stable and trustworthy.  Today one can do a search for direct payday loan lenders and find a stable company to transact business with.

As the economy continues to affect people of all backgrounds and classes, more and more families and communities look to cash advance services such as the ones now provided through check cashing stores and even through the internet.  There is no longer a lengthy process involved.  So what do you need to get a payday advance these days? All you need is a job.  There is no credit check.  As long as you make a minimum of at least $1000, you can qualify under easy terms.

Want to find out if you qualify in minutes? Apply here

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Payday Loan Fears Resolved

Posted by Emily

Go ahead and put your fears to rest.  If you need a cash advance online, you can easily find one.  In many cases most people have  had some sort of experience similar to this one.  Often times,  if you need a cab you will find it hard to get one.  On the contrary,  if you do not need a cab that is usually the time they tend to be everywhere.   This can also be true with our need for money.  But today that need not be the case since the growth of payday loans.   Cash advances are now everywhere and can help you easily solve your monetary worries.  There are several times when one may wake up one morning with an unexpected life emergency where the need for money is dire. What is worse is when one is not ready for such financial emergency.

In cases like this what payday lenders can offer will really be of great help however issues with regards to payday loan are making people think twice. There are several pitfalls associated with the use especially of the online payday service. These negative association can actually overshadow the pivotal role lenders online can play to the lives of people who are in dire need for fast money. Online payday lenders certainly can help a lot of people because they can answer people’s urgent needs.  The service can be very legitimate if person using this service will be cautious enough about doing so.

People need not  fear payday online transactions since there are several ways on how they can settle with a company that would not drag them deeper into trouble. First you have to be an informed customer.  Take some time to research  the things you need to know and understand about payday loans.  If you understand what the service can do and cannot do you are less likely to be fooled by any online scam.   Moreover consider reviewing your state laws regarding cad check and pay day loan.  This will give you a better view of how legitimate or how fraudulent an online payday lender is offering you.

Being knowledgeable of the ABCs of payday loans is just the first step on how you can remove the possibility of falling into deceitful transactions.  Try a trusted company like Cash USA Payday Loans.  You can apply here if you need to get approved in minutes.

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How Important Is Payday Lending To Local Communities

Posted by Emily

More and more families and shared households are facing a common challenge on a wider scale.  The challenge is the shortage of funds. The economy’s current state as well as the surge of job losses in this nation has left many families turning to new alternatives that would have never been previously considered.  We hear many testimonies and have been called “life savers”  in many cases during hard times. One customer reported that she was able to use a payday loan to avoid the high Non-Sufficient Funds (NSF) charged by the banks.  The average bank fee for (NSF) $35 per charge, compared to the finance fees charged by most payday lending companies which start at around $15-$20 and up. Many have depleted savings, and borrow money from friends and family to get by during critical times.  Many have taken on jobs that pay far less than what  the household was accustomed to bringing in.  While the unemployment rate is steady and job creation and development has been slow, many have begun to entertain the thought of obtaining short term loans.  This is where the Payday Loan industry fits into the picture.

Who are some of the consumers of payday loans? Having to borrow money is obviously not something most families like to report.  However, according to the Survey of Consumer Finance Data (SCF) the average consumer of a payday loan is approximately aged 36-39, is Caucasian, and has some college education, but  no degree.  Another %19 of borrowers taking out payday loans do have a college degree.  Industry figures as well as the SCF’s data show that the mean income for families who took out a cash advance payday loans was in the range but not much over $32,000, whereas the households bringing an income closer to $80,000 and above were less likely to take out a payday loan.  The Federation of International Civil Servants Association reports that their payday loan borrowers have an average household income of  more than $40,000.   Another report stated that the average family income for families taking out payday loans ranged between $25,000 to $49,000.

Much can be said from this data. Not only does it thwart the previous information stating that payday loans were only utilized by low income households, but it shows the frequent use of these loans by families with both low income and middle class incomes. It also clearly addresses the necessity of having access to this type of service for both income levels.

We may be able to help you during your cash shortage. Apply here

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Who Are The Banks Lending To? Can You Really Believe What You Hear?

Posted by Emily

Who are the companies lending money to the payday loan lenders? They are the banks, of course.  They are certainly not lending  to families and small business. In fact, these are the same banks who were bailed out by the government.  There are published reports where you will find quotes from these very bank lenders calling the payday loan industry a “bottom feeder” industry. So why are they doing business with them? For the huge profit. These banks are by no means hurting, but are making great profit at servicing this industry. Bank of America claims they treat “payday lenders as a discouraged industry.” But when their doors are closed is that really true?

These same banks have become slow to provide home loans for families and lend to small businesses, but instead have provided the financing for payday lending companies with whom they claim to look down upon and have distant dealings with.

This week in the Seattle Times, Bank of America stated “We treat payday lenders as a discouraged industry” “We have limited appetite for doing business with them.” But according to the chart below, you can see where a good portion of the money is going.

In their defense, banks, including B of A have begun to impose stricter rules for compliance . They do appear to try to choose reputable payday lending companies, including some large publicly traded companies that have good compliance, consumer disclosure and collections practices. Their claim is that they ‘strive to do business with only the most responsible of these lenders.”

When banks refuse to have reasonable lending terms for families and homeowners many have gone to nontraditional financial institutions, such as payday loan companies, for short term personal loans.  In many cases the lending fees are high because of the banks finance fee to the lender. For many, these are the only financial institutions that are easily accessible are check cashers, pawn shops and payday loan centers.

So why deal with “bottom feeders”? Simply put, the banks are under scrutiny from the government and are losing normal streams  of revenue that was enjoyed in the past because of new financial regulations. They have a strong need for new ways to make money and lending to payday lenders is one great resource for banks. Their comments about the industry being so distasteful, and how their appetite is limited in doing business with lenders really is a joke. The payday lending industry has brought them a great avenue for new revenue and they are enjoying it as the payday lending industry continues to move full speed ahead. It cannot be ignored that the payday lending industry is extremely lucrative especially where banks come in. For example, a normal $500 payday loan from the banks would come with an APR of about 287 percent.

‘Kevin Connor of the nonpartisan Public Accountability Initiative found that banks have extended $1.5 billion in credit over the past few years to publicly traded payday loan companies. They estimate available credit to the industry overall is as much as double that when privately held payday loan firms are included.’

Reports estimate that there are over  22,000 payday loan stores nationwide which make $30 billion in loans each year.

The banks borrow from the Federal Reserve at low rates, but last year the banks collected $70 million in interest payments from payday centers during the year of 2009 alone. At best their negative connotations on the industry that is helping sustain them is really all about reputation.

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Wells Fargo and Other Major Banks Finance Big Pay day Lenders

Posted by Al

Wells Fargo and Other Major Banks Finance Big Payday Lenders

According to two separate reports Wells Fargo is taking the lead amongst major banks with regard to financing large payday lenders.   Following closely,  is US Bancorp. and JP Morgan Chase & Co.  Up to this point the banks have provided, accumulatively,
more than  $2.5 billion in credit to large payday lenders, including those that offer pay day loans online.

This report shows  the need  for payday lenders to exist.  It also gives testimony to the banks’ interests in taking advantage of the payday lending industry in an indirect way with little involvement.

While there are many critics of the pay day lending industry, it is important to know that payday loan businesses are legitimate businesses that contribute to the growth of the economy by providing jobs, paying their fair share of taxes and dues, and help their consumers with fast and quick loans when cash flow is a problem.  It is important to distinguish between reputable lenders like Pay1day and other lenders who may be  engaging in unethical lending practices.

At Pay1Day, a direct payday lender, we provide loans directly to our consumers with no hidden fees. Our loans fees vary  based on State rules,  regulations, and consumers’ credit with us.

All  terms and conditions on our loans are clearly explained by our knowledgeable and professional customer service representatives and are also clearly stated on our contract.  When you call our customer service there are no automated machines.  Pay1day is based here in the US, and our loan approval process is almost instant.  If consumers are approved, funds are transferred within 1 day.

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Why Use A Payday Loan?

Posted by Emily

The average payday loan consumer takes out cash advances or small personal loans for immediate and unexpected emergencies that may be for, but not limited to, common necessities such as food and gas. It is a great option for those who are in need of immediate assistance.  With the economy in the plummeting condition that it has been in, it is not unthinkable that more and more families would find themselves in situations where a few hundred dollars on a short term basis would come in handy. In many cases, what has happened is that many  have used up financial resources and savings to cushion themselves during job loss or other economic stresses. Once those resources are used up, it can take many families months or even years to replenish their savings. Additionally, for those who have recently become employed, there also may be instances where a short term would be useful especially in cases where ordinary savings may have been unexpectedly depleted or inaccessible. In those cases, payday loans can provide temporary relief to individuals who may not have enough sufficient time to wait until their next paycheck.

Payday loans often have reasonable fees ranging from $16-$52 depending on the amount of the loan. The benefit usually far outweighs normal fees associated with the loans.   In uncertain times, many consumers have voiced that they are glad to know there is an option of immediate cash available on a short term basis.  Life can bring up many unplanned surprises. Now that online payday loan services are readily available it takes one less unknown factor out of the equation. Today it is easier than ever to apply online. One can do this without faxing and do so simply by entering a few lines of info and get approved quickly.   Click here

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** Payday Loan Industry Collection Warning **

Posted by Al

Consumer Alert regarding fraudulent collection activity involving payday loan customers!!

Earlier this month we released an important notice on unlawful payday loan collection agents  calling our customers in an attempt to solicit payment. There demeanor is very threatening and highly aggressive and unprofessional. In some cases, this group of individuals are threatening consumers with incarceration.

Cash USA just released a similar notice via press release and mass emailing to their customers to apprise them of this unfortunate matter.

As a reminder, Pay1Day is a direct lender that not only utilizes diplomacy during the course of communication with there customers, we continue to enhance the awareness of such matters to our complete customer base. Our In-House Legal Division has been trained to provided information to victims to ensure that there identity is safeguarded.

If you suspect you may be the target of this disturbing activity, please report this to our legal department @ 888-729-1329, option #2.

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Payday Loans

Posted by Al

A payday loan is a loan usually lent out for a short duration under 2 weeks. The average payday loan is for 8 days and the average payday percentage is around 15%. As per the statistics, 90% of the revenues that come to the payday loan lenders are from those who get up to 5 loans every year. There are many payday stores, in fact more than the number of McDonalds in the country. However, payday loans are apt for some situations and you need to tread the line carefully. In a payday loan, the lender gets a post dated check from the borrower, so that the lender can withdraw money from the borrower’s account after the stipulated period of time.

Mid Month Crisis

If you have a steady stream of income at the end of every month, but fell short of money in the middle of the month, payday loan is one of the options to consider. If your credit card has maxed out and you fail to convince your boss for a cash advance, then payday loan can save the day for you. Since you have an assured income at the end of the month, you don’t have to worry about the debt flipping over to add excessive interest. These emergencies could be medical costs, children’ education related costs or some big purchases you had to make to get a good discount deal.

If you are a businessman

Sometimes the borrowers of payday loans could pay an APR of 390 percent. At a monthly level this is a smaller number and there are many businessmen who make much more than that with the loan amount. If it is the time of the month when liquidity is most important, payday loans could be a good option. Businessmen could go for a higher interest loan to ensure they have sufficient money for the raw goods or other necessities which will contribute to the eventual profit yield.

If you are between jobs and your final settlement is delayed

If you are between jobs, it would be very hard for you to get a reasonable credit card or even a personal loan. However, the final settlement of the previous job always takes time. If this final clearance or settlement is delayed, payday loan is a good option as you are assured that you will have a monthly income soon. If you already have your new job, your 2 week payday loan might be a better option that breaking your deposits or asking from friends and parents.

The Big Sale

Every now and then something you need is on sale but you don’t have sufficient funds to go for the transaction. If a payday loan costs less than what you save through the deal, then it is a very good option for a week or two, till you get your salary. The same is the case when you are buying a gadget or car and the models are fast selling out. You might not really be able to wait till the end of the month.

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Arkansas Two Online Payday Loan Companies, Reports Payday Loans Max

Posted by Al

According to Payday Loans Max,  Arkansas’s attorney General sues two online payday loan businesses and their owners.

They claim that these online lenders lending out illegal payday loans with interest rates higher than allowed by Arkansan’s law. These law suits are against Arrowhead Investments Inc., and Galaxy Marketing Inc. Christopher Hodes is  holder of both companies so he will also be subject to the law suit.

The law suit was filed in Pulaski County Circuit Court again this individual and his two holding companies accusing him of marketing Arkansas payday loan consumers through various websites lending payday loans with high interest rates some as high as 782 percent!

The lawsuit seeks to prevent the defendants from providing such high-interest loans starting immediately. Also, the defendant will not be able to collect any debt on all loans that were made illegally including the principle.

According to a Payday Loan States article in an industry resource, below are the restrictions on payday lenders in that State:

Legal (For Check Cashers Only)
Max Loan Amount: $500
Max Charge/APR% for a 14 Day Loan ($100):  $20/520%
Term: Minimum 14 days
Rollovers Allowed: Two
*Editors Note* – Arkansas has placed tight restrictions on the average payday lender, making it very tough to run a Payday Loan Business in Arkansas.  Many people have turned to internet lenders to find access to short-term credit.

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Important Notice on Payday Loan Collections

Posted by Al

There is an important notice about fraudulent parties calling payday loan consumers and acting as collection agencies. This includes threatening them with legal action; including but not limited to arrest, extradition and court appearances.

There is a consumer alert on the Payday Loan Blog on these fraudulent parties contacting payday loan consumers, including ours, and attempting to collect debt.

Please be advised, Pay1Day cares about your business, respects your privacy, and  only work’s with reputable, established and bonded collection companies.

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