payday loan industry, but on the law that governs it. Currently, the law permits a borrower to borrow several number of payday loans that promotes the “roll-over” system which then put borrowers in a debt trap.

A bill by Sen. Jim Waring last year was successfully passed prohibiting payday loan providers towards rolling over balances to families in the military. This too, would be favorable to civilians as this would stop payday loan providers from granting multiple loans to just one individual until the borrower has fully repaid h

It is a fact that Payday loan lenders provide valuable service to millions of Americans and the American Government should not trample it. According to survey, currently, payday loan providers make nearly 60 million payday loan transactions a year – that is about 10 million American families and the number is increasing.

One reason why a payday loan is very attractive is because of its easy and simple application process that requires no credit check. The person just issues a post-dated check in the amount he needs plus interest of $8 per $100 loan. If the borrower fails to pay in full the loan amount after a period of 30 days, the payday loan provider then rolls over his loan and charge interest again – and this is were a payday loan is criticized – the roll over charges which can put borrowers into a debt trap.

Therefore, some states have moved to control this practice of what most officials refer to as “predatory lending.” In Arizona, for instance, while lawmakers have withdrawn from regulating or modifying payday loan providers, State Rep. Marian McClure is rallying forces so to put up a proposal that would then leave the industry bankrupt – he is proposing to limit 30% annual interest on payday loans which will definitely put payday loan providers out of business. Although most legislators agree that McClure’s desire of protecting pay day loan borrowers is indeed noble, his suggestion needs closer examination.

Legislators should ask themselves:

1. Should payday loans disappear, where can borrowers turn to?

2. Are there other payday loan alternatives? No credit check and collateral needed?

3. Is the present heavy usage of payday loans an issue of lack of good budget understanding or excessive spending or is the issue the widening and deepening wage and employment opportunity gap?

What legislators like McClure fail to recognize is that, payday loan providers serve a very significant market – these are people who do not have the assets in order to get a loan from banks that requires collateral – these are people living below poverty line.

The problem should not be blamed on the payday loan industry, but on the law that governs it. Currently, the law permits a borrower to borrow several number of payday loans that promotes the “roll-over” system which then put borrowers in a debt trap.

A bill by Sen. Jim Waring last year was successfully passed prohibiting payday loan providers towards rolling over balances to families in the military. This too, would be favorable to civilians as this would stop payday loan providers from granting multiple loans to just one individual until the borrower has fully repaid hi

f $8 per $100 loan. If the borrower fails to pay in full the loan amount after a period of 30 days, the payday loan provider then rolls over his loan and charge interest again – and this is were a payday loan is criticized – the roll over charges which can put borrowers into a debt trap.

Therefore, some states have moved to control this practice of what most officials refer to as “predatory lending.” In Arizona, for instance, while lawmakers have withdrawn from regulating or modifying payday loan providers, State Rep. Marian McClure is rallying forces so to put up a proposal that would then leave the industry bankrupt – he is proposing to limit 30% annual interest on payday loans which will definitely put payday loan providers out of business. Although most legislators agree that McClure’s desire of protecting pay day loan borrowers is indeed noble, his suggestion needs closer examination.

Legislators should ask themselves:

1. Should payday loans disappear, where can borrowers turn to?

2. Are there other payday loan alternatives? No credit check and collateral needed?

3. Is the present heavy usage of payday loans an issue of lack of good budget understanding or excessive spending or is the issue the widening and deepening wage and employment opportunity gap?

What legislators like McClure fail to recognize is that, payday loan providers serve a very significant market – these are people who do not have the assets in order to get a loan from banks that requires collateral – these are people living below poverty line.

The problem should not be blamed on the payday loan industry, but on the law that governs it. Currently, the law permits a borrower to borrow several number of payday loans that promotes the “roll-over” system which then put borrowers in a debt trap.

A bill by Sen. Jim Waring last year was successfully passed prohibiting payday loan providers towards rolling over balances to families in the military. This too, would be favorable to civilians as this would stop payday loan providers from granting multiple loans to just one individual until the borrower has fully repaid h

e is rallying forces so to put up a proposal that would then leave the industry bankrupt – he is proposing to limit 30% annual interest on payday loans which will definitely put payday loan providers out of business. Although most legislators agree that McClure’s desire of protecting pay day loan borrowers is indeed noble, his suggestion needs closer examination.

Legislators should ask themselves:

1. Should payday loans disappear, where can borrowers turn to?

2. Are there other payday loan alternatives? No credit check and collateral needed?

3. Is the present heavy usage of payday loans an issue of lack of good budget understanding or excessive spending or is the issue the widening and deepening wage and employment opportunity gap?

What legislators like McClure fail to recognize is that, payday loan providers serve a very significant market – these are people who do not have the assets in order to get a loan from banks that requires collateral – these are people living below poverty line.

The problem should not be blamed on the payday loan industry, but on the law that governs it. Currently, the law permits a borrower to borrow several number of payday loans that promotes the “roll-over” system which then put borrowers in a debt trap.

A bill by Sen. Jim Waring last year was successfully passed prohibiting payday loan providers towards rolling over balances to families in the military. This too, would be favorable to civilians as this would stop payday loan providers from granting multiple loans to just one individual until the borrower has fully repaid h

heck and collateral needed?

3. Is the present heavy usage of payday loans an issue of lack of good budget understanding or excessive spending or is the issue the widening and deepening wage and employment opportunity gap?

What legislators like McClure fail to recognize is that, payday loan providers serve a very significant market – these are people who do not have the assets in order to get a loan from banks that requires collateral – these are people living below poverty line.

The problem should not be blamed on the payday loan industry, but on the law that governs it. Currently, the law permits a borrower to borrow several number of payday loans that promotes the “roll-over” system which then put borrowers in a debt trap.

A bill by Sen. Jim Waring last year was successfully passed prohibiting payday loan providers towards rolling over balances to families in the military. This too, would be favorable to civilians as this would stop payday loan providers from granting multiple loans to just one individual until the borrower has fully repaid h

payday loan industry, but on the law that governs it. Currently, the law permits a borrower to borrow several number of payday loans that promotes the “roll-over” system which then put borrowers in a debt trap.

A bill by Sen. Jim Waring last year was successfully passed prohibiting payday loan providers towards rolling over balances to families in the military. This too, would be favorable to civilians as this would stop payday loan providers from granting multiple loans to just one individual until the borrower has fully repaid his/her debt.

It just can not be denied that there are millions out there in need of extra cash but just can not get this from a traditional loan. The government is responsible for filling up that need.