News : Easy Payday Loans in Georgia

Payday loan bill is regulatory overkill

July 28, 2008

It is more difficult to get a loan today than at any time in recent memory.

Financial institutions, including major lenders, have become increasingly risk-averse, raising their loan requirements and essentially preventing thousands of borrowers from obtaining a loan.

It seems ill-timed to cut off the few alternatives available to many borrowers.

These loans emerged to meet consumer demand when other sources of financing were unavailable.

They are risky but clearly more desirable than the alternative, bounced checks and late fees, which only further damage a blemished credit history.

In a study conducted by the Federal Reserve Bank of New York, researchers found that states with bans on payday lending experience an increase in bounced checks, higher rates of bankruptcy, and more complaints related to collections.

If a lending practice proves fraudulent or exploitative, the market will quickly force out those products...

Source : http://www.dailyherald.com