At PayDay2Go, they recognize the unrest throughout the nation and the confusion resting on payday loans. For this reason, they remain committed to upholding their goal – providing borrowers with quick and easy money when they need it.
(PRWEB) June 17, 2011
In May of last year, House Bill 1290 was signed into law. In November, it took effect. This bill was designed to regulate the payday lending industry in Colorado – putting a cap on interest rates and extending the terms of loans. In theory, this bill was made to keep individuals away from a common payday loan trap in which borrowers not pay off their loans but rather just roll them over with extended deadlines.
This theory, however, did not completely translate in application of the bill. With a 45% cap annually and a six month loan term on the bill, it has been found that the bill did not just regulate and reform the industry in the state – it practically eliminated the industry throughout the entire state.
After the legislation took effect, payday lending was completely switched in Colorado. No longer was the payday loan a quick and easy to way for consumers to get money when in a tight spot. Instead, it morphed into something completely different, a six-month installment loan.
The end result? Payday lenders throughout the state have had to close their doors, an estimated 140 stores total, and over 400 jobs have been lost from the sudden dip in the industry. Since then, this legislation has come under fire, payday lenders claiming that the caps were too steep and the changes too severe.
This is not the only bill of this type. Throughout the nation, lawmakers have been targeting the payday lending industry in an attempt to find a balance between fostering the industry’s growth and protecting the consumers who are taking out the loans.
At PayDay2Go, they recognize the unrest throughout the nation and the confusion resting on payday loans. For this reason, they remain committed to upholding their goal – providing borrowers with quick and easy money when they need it. They are proud to provide a transparent service and have a reputation for being reliable lenders with clear fees and no hidden traps.
A payday loan is not meant to be used to supplement income, but it can be used if an emergency occurs and a borrower is in need of money – and money fast. By seeking a cash advance, they will be able to get the help they need to deal with life when it comes at them, no matter if this is in the form of a sudden medical expense, a car repair or other.