Minneapolis, Minn. (Vocus) July 8, 2009 -
Fast payday loan options have decreased due to new laws in Virginia, raising some controversy among lenders and lawmakers. FastLoan.org uncovers some of the claims to ensure citizens have the most current news on the subject.
Since the new fast cash advance loan laws were initiated in Virginia, the number of fast payday loans issued has decreased approximately 84%. According to the Bureau of Financial Institutions, the fast cash advance loan notes issued dropped from about 281,000 each month to about 45,000 per month since last year.
Ultimately, the law passed to reduce the number of fast cash advance loan notes issued has met its intention. Among other changes, legislators had put in place terms so that borrowers could only take out one payday loan at a time and doubled the amount of time borrowers had to pay back the loan.
Legislators argued that cash advance lenders preyed on vulnerable borrowers who were in desperate need of cash and did not qualify for traditional credit options. Borrowers were hooked with "fast loans made easy" slogans. With the high interest rates and the short repayment time, borrowers would need to take out additional payday loans to repay existing payday loans. This would create a vicious circle with the borrowers only sinking further into debt.
With tighter lending standers by banks and the difficult economy, cash advance loan lenders argued that "fast loans made easy" were what their clients needed. With out their service, some people would have no where else to turn. The tight repayment deadlines and high interest rates, it was argued, were the only way the lenders could take on the risky loans and stay in business.
The tougher standers on cash advance lenders has forced many out of business, when the economy is already suffering with high job loss rates. The number of payday loan stores has dropped from 832 in 2007 to 526 in June 2009.
At FastLoan.org, fast loans are made easy. We take the guess work out of searching for a payday loan lender and offer insightful articles so you are up-to-date on the latest information surrounding cash advance loans. Learn more about payday loans and find out if this is a good option for your situation.
Public Relations Specialist