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Payday loans – cheaper way of planning funds

2013 May 28
Posted by LoanStar

The Consumer Financial Protection Bureau (CFPB) is one of the most reputed organizations in US for protecting the interests of the consumers at wide while dealing with their financial decisions. Recently, payday loans has become a really niche business in USA and to have an insights in this business from the consumer welfare point of view, the CFPB decided to carry an in depth research. The white paper was published on 24rth of April 2013 under the head “Payday Loans and Deposit Advance Products”. The whole research was carried out by interviewing people who took out payday loans and ultimately aimed to provide a blue print on how to regulate the correct attitude to protect consumers and safeguard that they have entrance to a small loan market that is fair, transparent, and competitive.

The financial situations of US consumers who are in heavy debts seriously need small dollar loans from lenders. Payday loans certainly provide these small dollar loans against the next pay cheque to be received by consumers. The regulations which are under discussion right now needs to protect these consumers from the burden of these loans carrying huge costs and stop them entering into a cycle of repeating borrowings. Meaning by the debts shall end at the end of the day for consumers.

The CFPB concluded in the research that the small short term payday loans are certainly fulfilling the needs of consumers but they shall also understand the consequences of failures to repay them. If repayment is not done in time then consumers may caught by larger debts for a longer period of time and that too with almost a gambling habit of rotating these payday loans one after another.

Today both banks (called depository institutions in the white paper) and private lenders serve payday loans no credit check. The access of the funds is rapid fast, the application can be made online and funds are directly received in the checking account details provided by consumers. There is no credit check, registration of security or in depth analysis of consumer background.

What is required from the lenders side is the regular income or job on hand. If there are more than one job then one can easily bear the costs of payday loans and the eligibility of amount of payday loans can be even higher.

The payday loans no credit check are available with cooling off periods. The repayment period is usually 24 hours to be extended till the next pay is available to consumers. Not just that the extensions in the payday loans is also available at the discretion of the lenders exclusively.

Payday loans no credit check are available without any discrimination. Any age, gender or race can get payday loans without any questioning and for any use the consumers want.

The regulations under pipeline can bring lot of relaxations on the part of consumers. They will make payday loans even more approachable than before, given the regulations are made in favor of consumers.

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