Question of the Month:
Question of the Month is yet another effort by the debtcc team to enhance the community knowledge bank. It’s a monthly contest and every month a challenging question will be thrown before the members for responses. The best answer will be chosen collectively at the end of the month by the debtcc members and the admin panel of the site. The winner of this contest will receive a handsome reward of a $50.
The purpose behind this idea is to encourage the members to share their real life experiences in dealing with the financial challenges.
Though different financial issues are being discussed across the debtcc board, but it doesn’t leave much scope to the members to share their personal experiences. Here is the place where it can be done, and also that the new members can get the innovative ideas to deal with their debts along with the conventional ones.
Latest Question
Question 10: Do you think that payday loans should be banned across all states?
Payday loans - the high interest loans that help meet our unforeseen expenses, often push us into the vicious circle of debt. Most of these payday loan companies operate illegally and harass debtors with threatening calls, in case the debtor fails to pay back the money. Moreover, pdl companies also ask for payment of high interest and finance charges.
We invite you to share your opinion on whether payday loans should be banned across all states. If your opinion is voted as the best by our members, you can win $50.
Winner Post
Answer 1: Payday lenders basically have a license to steal, there isnt anything right about that. I believe that all the complaints consumers have filed the past few years have finally opened the governments eyes on many levels. Payday lenders should be regulated on a Federal level, one law for ALL payday lenders, but we know that will never happen, therefore, they should be banned.
Answer Posted by |Shazzers
The other answers worth mentioning are:
Answer 2: I am not sure that banning them would be the answer. It is kind of like in the past when they banned the booze, people found a way to get it through illegal means. I think the loan sharks from years ago would profit greatly from this.People are going to need help, especially now and when you are desperate, you do desperate things.
Maybe the answer would be to have very strict laws passed on rates,rate caps,disclosure,fees,etc. And this would be done under an agency that makes sure that they are following the guidelines,if this would even be a possible way to regulate them.
I also think that we,as a society, need to learn to become educated in debt,debt practices, handling our finaces,etc. Once we are educated in these, we are armed to make logical decisions and wiser choices with our money.
Until, and unless,there are stricter limits,fees and a wath dog on the PDLS, it will continue to take advantage of desperate people..
Answer Posted by |Bossy4455
Answer 3: I am one person who should say a big yes to this question because of the huge mess I had been in, but I would have to say no. They need to crack down on the internet lenders and put all of them out of business. Because with the internet lenders all the fees collected are going over seas. We need to keep our money here in the USA not to make some other county rich by screwing the American consumers who fall on hard times. But now with the storefront lenders there needs to be some regulations placed on them. They need to come up with some sort of database that they all have to report to, like the chex system for example. So that customers cannot have 10 loans out at different companies. Only allow them 1 and NEVER over $500. I see them now offering over $3000 on a payday loan. They should have set interest rates. Not in the hundreds either. Even though thats how they make their money. They are like legal loan sharks now, when they should be in business to help the customer who cannot get a regular loan because they have bad marks on their credit. Not to make matters worse. If they have a complaint againt the company there should be an investigation and if the complaint is true they should lose their license.It should be made that no one is able to fall into the payday loan trap. Take it from me, a person who ended up in that trap and paid out over $65,000 in 2 years by paying rollover fees and loans just to get out of the mess. But if no one wants to put the strict regulations on payday lenders then they should not be legal at all. But now states that allow payday loans would end up losing all the license fees, and that will come back to us in some other fee to the state so they can make their budget.
Answer Posted by |puddlejmpr
Answer 4: Many of us are average income workers that fall into financial problems now and then. That puts us into the position of needing quick funds to solve the problems. Payday loans can become a quick fix and addictive. Their interest rate is ridiculas and they purposely try to rip you off. If banks would wake up and allow more small short term loans to help the average person, they can eliminate many of the Payday loan companies. Yes Payday loan companies should be banned in every state.
Answer Posted by |drop9drop
Answer 5: Yes, I believe that PDLs should be banned across all states. They are presented as an option to help you make ends meet until payday with commercials showing people smiling and feeling relief; however, they are a trap. They dont show that same person trying to pay $900 or more for a $300 loan.
I fully understand the need to collect interest on a loan; however, they are attempting to collect the same amount of interest someone would pay for a several thousand dollar loan that is paid back over years. If they wish to collect that much interest, they should provide those types of loans. I also understand they are generally lending to high risk debtors; however, this is no excuse for the fees, interest rates and tactics they use to collect.
The fact that the majority operate illegally shows their unwillingness to cooperate with the laws of our states. Since this industry refuses to abide by the law they should not be allowed to operate within the USA.
Answer Posted by |sixxgurl1982
Answer 6: YES, I do definately believe that "pay day loans" should be banned in both the United States, and in Canada. The rates are so high that it appears to be more like "loan SHARKING", rather then a "loan". The same can be said for credit card companies! It is in my opinion, a blatant abuse of the needier people who usually seek out a temporary loan. PLAINLY…ITS GREED!
Answer Posted by |Karen1244036387
Answer 7: Payday loans should be banned across the United States. The companies who provide these loans engage in predatory lending practices. Due to the lack of regulatory standards with internet payday lenders, the consumers can access multiple loans, often putting a band-aid on their financial burdens from payday to payday, ultimately mounting to volcanic proportions. Each payday the consumer takes additional loans in an attempt to live from payday to payday as the majority of their check is drained with multiple fees.
It is an unfortunate and sad predicament, often leading to financial ruins and additional stress on individuals and families.
Payday loan interest rates and fees are outrageous and are worse in comparison than loan sharks. Help vulnerable consumers and stop the "payn" BAN PAYDAY LOANS!!!
Answer Posted by |mashba
Answer 8: I absolutely believe that payday loans should be banned from offering lines of credit. Theyre all togeather a huge joke and just about anyone who is thinking about taking one out should totally rethink their idea of borrowering $300 with a 200% interest rate. I got way in over my head. I was literately drowning in this payday mess I got myself into about 3 years ago it took over 6 months to get out of the mess while trying to take ends meet. See the deal is they dont want you to get out of debt theyd much rather charge you interest everymonth instead of allowing you to pay back the loan quickly. I even had one loan where I paid it off and they still continued to draft money out of my bank account. Never the less I closed the Acct they were drafting from contacted them to inform them of their illegal activity and they didnt seem to care. They asked me if I enjoyed check kiting!? I had no idea what this was nor did I understand what the rep was meaning. I had the ability to send my bank statments proving that they drafted me after the loan was PIF (paid in full) along with the CC I paid the loan off with. What a freaking hassle. Ill NEVER make the same mistake again. Payday LOANS are HORRIBLE and I hope that the compaines that own these organizations are sent packing.
Answer Posted by |mary1243999638
Answer 9: I think the ones that do not carry a license within the state the person who is trying to get a payday loan resides in they should not be able to lend money. From experience online payday loan lenders typically do not carry a license in my state (Alabama). Did I get approved yes! Did I know this at the time of getting the funds no. After the snowball effect of loan after loan due to not being able to pay on the ones I already had I just applied for me. The fees are outrageous and it is hard to keep up with when they debit your checking account. Some of them I didnt even know for sure I was approved until the funds were credited to my account. Nothing was emailed to me as far as sign on information to the site so I can check my balances. Also, most of them charge a rate that is too high then set by Alabama Banking and gave over $500 which the max in AL is $500 not to mention you can only roll over one time in the state of AL. All but one of mine rolled over causing me to pay for way more than I should have. Personally store front is better! Check your states laws and ask them who is legitimate.
Answer Posted by |Lori1243887804
Answer 10: No, although they cause a lot of headache when you get into them (like myself). They do provide a way out of no way in an emergency. IfI did not get mines, I would not have money to get a pull up for my child and no one could, the funds came through at the last minute and when I needed it most. It is the consumer to be cautious and who needs underground payday loans to start popping up. You think crime is bad now!
Answer Posted by |brownlatisha
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