States Unfairly Target Payday Loan Companies, Says GetECash.com

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Payday loans are short term loans. They bridge the gap between emergencies and pay day. We don’t check credit scores. It’s fast. Apply online today and you could get your money in your bank account by tomorrow.

Lindon, UT (PRWEB) November 13, 2009 –-

States are cracking down on payday loan companies because of high interest rates. GetECash says that if you pay your loan back on time, the interest rate is actually lower than bank fees and is much faster. The problem is people often compare the higher interest rate of late payments to regular bank rates.

http://www.GetECash.com is a company that offers payday loans - and is part of an industry that is being attacked by several states. The industry is being scrutinized for charging high interest rates on loans. Yet the exorbitant interest rates often quoted in the media are not what most customers actually pay. The highest rates are paid by people who fail to repay the loan within the time frame they agreed upon.

Another factor that contributes to higher interest rates is that payday loans have an extremely high default rate. Around 30% of the loans are never repaid. So the fees have to be high enough to cover these or payday loan companies couldn’t stay in business. If put out of business people will not have a place to go when they need money fast and have no other options.

Payday loans remain a viable option for the right person and charge less than banks charge in overdraft fees. They are not a quick fix for ongoing financial challenges.

Here’s an example of how a payday loan can help: “Last month my wife wrote a check on the wrong bank account. When that $11 check bounced we were charged $34 in bank fees. Compare that to payday loan company GetECash. She could’ve gotten $100 for two weeks and paid less – $30, or paid it back in 4 days and paid under $10 in interest,” said Austin H. Marketing Director at GetECash.com

The news is full of stories like the Columbia City Council who imposed a moratorium on giving licenses to additional short-term Missouri payday loan companies. Illinois Rep. Luis Gutierrez proposes a bill to cap interest rates on payday loans at 48 percent. He also wants to force lenders to provide a 90-day repayment plan with no additional fees for borrowers that don’t meet the original terms of a loan.

“Everyone looks at the high APR but don’t realize that payday loans are bridge loans. They bridge the gap between emergencies (like getting your car repaired so you can get to work) and pay day. We don’t check credit scores. You just have to be employed and show income and not have any delinquent loans. It’s also fast. You can apply online today and get the money direct deposited into your bank account by tomorrow,” said Austin.

Banks typically take at least two weeks to approve a loan and customers with low credit scores will not be approved. In today’s economy payday loans are an option and can be the answer when a financial crisis hits.

About GetECash.com
GetECash.com is a direct lender payday lender that finances their own loans. Borrowers are required to show proof of a regular earned income of at least $1,000 per month, Social Security or other benefits income of at least $800 per month, have a bank account, and are at least 18 years old to qualify for a payday loan.

The Annual Percentage Rate (APR) for a payday loan varies based on term of loan.

You will be responsible for the repayment of your entire loan balance, together with all interest owed. Make sure you can cover your loan obligation when the due date arrives, otherwise you will be liable for additional charges.

Apply for a payday loan online at http://www.getecash.com/application.php

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