File services

Russia’s delinquent payday loan portfolio hits new record

The number of overdue payday loans in Russia hit a record 5.4 million in February, according to consumer credit rating agency Equifax. In total, Russians owe microfinance organizations 172 billion rubles ($ 2.2 billion) – very short-term loans that usually come with high interest rates and are designed to tide borrowers out for a few […]

File services

Why payday loan use is on the rise during the pandemic and how you can avoid it

Payday lenders targeting low-income people are nothing new. Short-term, high-interest loans which are often intended for minorities in rural areas, have the potential to create a spiral of debt from which many find it difficult to break free. In 2018, for example, more than 33,000 payday loans were taken out each week in Alabama, according […]

File services

Illinois adopts strict payday loan limits as other states stagnate

Illinois has joined the growing number of states that have clamped down on high-cost payday loans, but it has taken a different route to get there: the state house. Illinois Governor JB Pritzker (D) signed legislation March 23 that caps interest rates on payday loans, auto title loans and installment loans at 36%. Similar efforts […]

File services

What happens when you can’t repay a payday loan?

A payday loan default can result in bank overdraft fees, collection calls, damage to your credit scores, a day in court, and garnishment of your paycheck. Don’t think it can’t happen because you only borrowed $300. “If you have a valid, binding legal agreement to pay that debt, and you’re in a state where they […]

File services

This Legislation Could End Illinois’ Payday Loan Industry | Chicago News

Kesha Warren needed a short-term cash injection of $1,250 to cover payroll costs for her small janitorial services business. In 2019, she took out an auto title loan, a short-term loan that uses the borrower’s vehicle as collateral. She says she has been cut off from more traditional bank loans. “Nobody wants to lend to […]

File services

How personal loan consolidation works

Drowning in payday loans? These options can be useful. (iStock) Payday loans are a short-term option for cash-strapped consumers. But they are hardly a saving grace. With exorbitant interest rates and short repayment terms, they often incur more costs than they are worth. They can also cause a vicious cycle of debt that is virtually […]

File services

How personal loan consolidation works

article Drowning in payday loans? These options can be useful. (Stock) Payday loans are a short term, in a pinch option for cash-strapped consumers. But they are hardly a saving grace. With exorbitant interest rates and short repayment terms, they often incur more costs than they are worth. They can also cause a vicious cycle […]

File services

How personal loan consolidation works

article Drowning in payday loans? These options can be useful. (Stock) Payday loans are a short term, in a pinch option for cash-strapped consumers. But they are hardly a saving grace. With exorbitant interest rates and short repayment terms, they often incur more costs than they are worth. They can also cause a vicious cycle […]

File services

SoLo Funds is an alternative to payday loans with bigger plans

Travis Holoway, CEO and co-founder of SoLo Funds, says his startup isn’t just a quick way to get a small, short-term loan. It’s the start of something bigger. The startup, which raised $10 million in a Series A funding round last week, offers an app where users can lend money to each other. Borrowers typically […]

File services

Dallas expands payday loan regulations to close ‘loophole’

In 2011, the City of Dallas regulated payday lenders and auto titles, requiring them to register with the city and structure loans to make repayment easier. This was in response to an explosion of lenders offering small, short-term loans with very high fees to low-income people with poor credit, often triggering a debt spiral. Now […]

File services

New ruling on payday loans is bad news for borrowers

Would-be lenders have long attempted to evade state usury laws by using what are known as bank leasing programs: an out-of-state bank, which is not bound by interest rate caps in the state of the payday lender, acts as a front to the company that is actually originating a high interest loan that they could […]

File services

Expansion of payday loans means quick money and cycle of debt for Michigan’s poor, Bishops say

A Michigan proposal to quadruple the maximum loan amount allowed for payday lenders would exploit the poor and trap many in a cycle of debt when alternatives are available, the Michigan Catholic Conference has told a Senate committee. ‘State. “Residents of the state may not know that there are charitable agencies and low-income loan opportunities […]

File services

The interest on a typical Utah payday loan goes up to 554% APR

Utah’s high-interest payday loan companies say the pandemic is hurting their already struggling industry – where nearly one in three stores have closed during a four-year slump amid… tighter regulations. Critics say government coronavirus aid may have reduced the need for such loans. As the surviving loan shops try to hold on, they have hiked […]

File services

LendUp Review: Is This Payday Loan Alternative a Good Choice?

Payday loans are risky business. Coming in at an average interest rate of 400%, once you get involved in a payday loan, it’s hard to get out of it. But there are times when you may have no other option. So if these loans are a necessary last resort for some, are there responsible versions […]

File services

Payday loan verdict paves way for further legal action | News

A test case for regulations governing irresponsible lending could pave the way for new lawsuits against payday lenders, according to a lawyer acting for a group of plaintiffs who had been encouraged to enter a “cycle of debt”. In Kerrigan vs. Risethe High Court found that payday lender Elevate Credit International Limited – better known […]

File services

Choose your payday lender wisely

For the millions of Americans struggling to afford an unexpected expense, high-interest payday and online loans may seem like acceptable options despite the inherent risk. But guidelines issued by federal regulators in the spring could bring a competitor to small-dollar lending: banks. The guidelines omit a previous suggestion from the Federal Deposit Insurance Corp. that […]

File services

‘A big mistake’: Consumer Financial Protection Bureau drops payday loan limits

After a years-long battle, the Consumer Financial Protection Bureau has rolled back a series of proposals to limit payday loans in a move advocacy groups call a “serious mistake” that could potentially trap vulnerable people in debt. The CFPB announced on Tuesday that it was rescinding the mandatory underwriting provisions – which essentially require lenders […]

File services

US consumer watchdog removes need for ‘ability to pay’ from payday loan final rule

WASHINGTON (Reuters) – The U.S. Consumer Financial Protection Bureau released its long-awaited payday loan measure on Tuesday that reverses an Obama-era proposal requiring lenders to first ensure a borrower is able to repay them. Consumer advocates blasted the move as yet another sign the Trump administration is getting soft on predatory lenders. The rule follows […]

File services

US consumer watchdog removes need for ‘ability to pay’ from payday loan final rule

WASHINGTON (Reuters) – The U.S. Consumer Financial Protection Bureau released its long-awaited payday loan measure on Tuesday that reverses an Obama-era proposal requiring lenders to first ensure a borrower is able to reimburse them. Consumer advocates blasted the move as yet another sign the Trump administration is being soft on predatory lenders. The rule follows […]

File services

Sunny Payday Loan Company Goes Into Administration – How It Affects Your Repayments

Payday loan company Sunny went into administration, affecting 50,000 customers. The high-cost lending company blamed the impact of the coronavirus and an ongoing crackdown on the payday loan industry. 1 Payday lender Sunny went bankrupt, affecting 50,000 customers Borrowers are urged to continue making payments as usual or risk damaging their credit score or being […]

File services

The pros and cons of using a payday loan as a quick cash solution

Most of us experience financial difficulties at some point in our lives. It can be a medical emergency, home expenses and bills. And finding extra cash to fix problems becomes a problem. Lucky are those who have family and friends to turn to in case they need to borrow extra money. However, it doesn’t happen […]

File services

The advantages of taking out a personal loan

Since the dawn of the internet age, the payday loan industry has grown tremendously. Nowadays, more and more people go online to borrow money when a sudden and unexpected expense arises. Thousands of payday lenders are flocking to the online space to grab their share of customers by offering instant loans to people in dire […]

File services

Payday Loan Debt Consolidation | The bank rate

If you’ve taken out a payday loan that charges exorbitant fees, the struggle to make the payments can seem overwhelming. This is a particularly difficult type of debt to repay because borrowers can get trapped in a cycle of debt. About 12 million people take out personal loans each yearand more than 80% of these […]

File services

Federal lawmakers seek to lower payday loan rates from 400% to 36%

Tens of millions of Americans are turning to high-cost loans that regularly bear interest rates of over 400% for day-to-day expenses, such as paying bills and covering emergency expenses. For many, these rates end up being just too high and leading to a seemingly endless cycle of debt. But that could soon change. This week, […]

File services

Toronto no longer offers new ‘predatory’ payday loan outlet licenses

Effective immediately, Toronto will no longer issue new licenses for payday loan outlets because the companies are “predatory” on low-income residents. The major regulatory change was approved by a unanimous 20-0 council vote on Wednesday night, alongside a package of recommendations regarding the city’s controversial payday loan industry. “We have heard stories time and time […]

File services

Is it still acceptable to take out a payday loan?

Payday loans have extremely high interest rates – but is it still okay to get one? Find out the answer here. Payday loans are short term loans with very high interest rates. In fact, the Consumer Financial Protection Bureau (CFPB) warns that payday loans typically charge an APR of around 400%. Unfortunately, since payday loan […]

File services

For Desperate Americans Considering a Payday Loan, Here Are Other Options

The Consumer Financial Protection Bureau has proposed gutting a rule aimed at regulating the payday loan industry. The agency on Wednesday released two proposals to roll back regulations on paydays, vehicle titles and other balloon payment installment loans that were finalized in 2017 and were due to take effect in August. The announcement comes more […]

File services

Do not take out a personal loan even in an emergency

The 800,000 federal workers who have been asked to work without pay or stay home during the record government shutdown are feeling the pinch: So far, each of them has lost more than $5,000 in wages in mean, New York Times reports. For many workers, this is “an emergency,” says personal finance expert Suze Orman. […]