Comments on: Knowing the Payday Trap and How to Get Out of Payday Loan Debt http://money.savvy-cafe.com/knowing-the-payday-trap-and-how-to-get-out-of-payday-loan-debt-2008-09-07/ Financial tips, retirement planning, taxes, savings, and more. Fri, 09 Oct 2009 00:08:40 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Jeff Kursman http://money.savvy-cafe.com/knowing-the-payday-trap-and-how-to-get-out-of-payday-loan-debt-2008-09-07/comment-page-1/#comment-1679 Jeff Kursman Tue, 30 Sep 2008 02:23:51 +0000 http://money.savvy-cafe.com/knowing-the-payday-trap-and-how-to-get-out-of-payday-loan-debt-2008-09-07/#comment-1679 To add onto what Payday Lending Rep said, the only way to reach the much-hyped triple digit APR and high fees you talk about is to take out one advance and continue to renew the same advance every two weeks for an entire year. State laws and industry best practices do not allow this to happen. Nor is the product designed for it. It is a short term loan for a short term cash need. To add onto what Payday Lending Rep said, the only way to reach the much-hyped triple digit APR and high fees you talk about is to take out one advance and continue to renew the same advance every two weeks for an entire year. State laws and industry best practices do not allow this to happen. Nor is the product designed for it. It is a short term loan for a short term cash need.

]]> By: Payday Lending Rep http://money.savvy-cafe.com/knowing-the-payday-trap-and-how-to-get-out-of-payday-loan-debt-2008-09-07/comment-page-1/#comment-1658 Payday Lending Rep Fri, 12 Sep 2008 13:41:42 +0000 http://money.savvy-cafe.com/knowing-the-payday-trap-and-how-to-get-out-of-payday-loan-debt-2008-09-07/#comment-1658 Customers do have alternatives and need alternatives when it comes to making financial decisions. Payday loans are one of these options. When facing an unexpected expense between paydays and have to pay a bill today, customers look at their choices and make a reasonable choice. Customers tell us that they use payday loans to avoid other fees that are far more expensive (i.e. credit card late fees, non-sufficient fund fees, overdraft protection). To say that payday lenders strive to get customers to continuously roll their loans over is invalid. Under Community Financial Services Association of America’s Best Practices, any customer who cannot repay their loan when due has the option of entering into an extended payment plan, allowing them to repay the loan over a period of additional weeks. This option is provided to customers for any reason and at no additional cost. You claim that rollovers are frequent and that to believe otherwise is unrealistic, however, regulator reports show that more than 90 percent of payday advances are repaid when due. Payday advances play a necessary role, providing hard-working people with a reasonable, well-regulated option for meeting unexpected or unbudgeted expenses and other short-term financial needs. Payday Lending Rep Customers do have alternatives and need alternatives when it comes to making financial decisions. Payday loans are one of these options. When facing an unexpected expense between paydays and have to pay a bill today, customers look at their choices and make a reasonable choice. Customers tell us that they use payday loans to avoid other fees that are far more expensive (i.e. credit card late fees, non-sufficient fund fees, overdraft protection).

To say that payday lenders strive to get customers to continuously roll their loans over is invalid. Under Community Financial Services Association of America’s Best Practices, any customer who cannot repay their loan when due has the option of entering into an extended payment plan, allowing them to repay the loan over a period of additional weeks. This option is provided to customers for any reason and at no additional cost.

You claim that rollovers are frequent and that to believe otherwise is unrealistic, however, regulator reports show that more than 90 percent of payday advances are repaid when due.

Payday advances play a necessary role, providing hard-working people with a reasonable, well-regulated option for meeting unexpected or unbudgeted expenses and other short-term financial needs.

Payday Lending Rep

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