There is always something being reported about some predatory payday loan lenders and now banks are being included. Those high interest rates attached to these short-term loans are expected from the payday loan lender, but what about 400% APR from a bank? Many people who qualify will turn to a bank for a car, home or personal loan. Those who have not been able to qualify for a typical loan are not heading to the banks for their version of a payday loan. These banks who are now payday loan lenders are not much different than the average online lender except they carry a trusted reputation with them.
Banks are being looked at as predatory payday loan lenders.
On average:
- Banks payday loan customers are in debt for 175 days.
- Annual interest rate is 365%.
- Customers pay more in overdraft fees than those who do not borrow the short-term loans. This is an average for storefront, bank and online payday loan lenders.
There are many people who had chosen to take out a payday loan from a bank thinking that there would be no predatory problems with a trusted bank, but found that there were more problems which occurred during the life of the loan. Petitions are being signed to attempt to keep banks from processing these loans.
There are pros and cons to the payday loan lenders. The borrower will need to shop around carefully for a lender, preferable with the least amount of ability to do damage to their finances. Having access to freeze or close bank accounts has pushed customers into additional financial problems.
Responsible online payday loan lenders like Spotya.com have a history of successful loans and promoting financial success through sharing budgeting and financial suggestions. Payday loans are not the only answer to financial situations. For those who will have the money to pay back the loan in a few short weeks, it is a low cost answer to money troubles. Responsible lenders will provide a friendly customer service staff who will answer all questions pertaining to the payday loan without putting pressure on the customer to sign for a loan. It takes teamwork from both parties to complete successful loans. Check with a few payday loan lenders to learn more about what a payday loan can do for you. Comparative shop to find the best company for your money needs.
