Outfits that offer payday loans, serve a legitimate function. Payday may still be far away, and yet there are bills that need to be paid. Anybody goes through this problem every now and then. It just happens that some are lucky enough to have close friends or family who are willing to lend the money needed desperately.
Payday Loans Make Borrowing as Easy as 1-2-3
Even for individuals with such a network of support, sometimes they may be out of luck because everybody just happens to be out of reach. Luckily, however, cash advance providers are just around the corner. While most are open only during business days and hours, others are available 24/7 online.
You can only imagine that the interest in providing this service is huge, usually sitting anywhere between 10 to 30 percent, says Joel Cohen. Hence, a good rule of thumb is never to mess with the service or else, you will get what you deserve.
Quick Loans Parameters to Remember
It’s easy to spot a good loan provider. The clerk at the window will be quick to remind clients to make sure that there is money in their bank account come next payday. Another advantage of the instant loan is there is no collateral required nor credit checks. There are usually only a few requirements: you are an adult with a checking account and that you are currently employed.
Why Payday Loans are Better than a Loan Shark
A checking account is necessary in order for the loaner to deposit the amount being borrowed as quickly as possible, and for you to be able to pay back the amount when it becomes due. Otherwise, the payday loan clerk will have to provide you with cash over the window and in turn, you will have to return to the branch when it’s time to pay up.
The Curious Case of Shy Borrowers
An example of a payday loan provider is Yes Loans which operates in the United States and the United Kingdom, and their websites are FastCash.com and PayDay.co.uk, respectively. What sets them apart from most providers of cash advance loans is that their operations are available online. Many providers are still largely branch-based which present some challenges for the borrower. First, you have to make sure you go to the branch during business hours. Second, you may be a little shy to borrow money by going to a place where someone is likely to recognize you.
In contrast, Money Mart operates in Canada and is mainly a branch-oriented payday loan provider. In the past, Money Mart figured in a class-action suit and as a result, the company has been giving rebates to regular customers as part of the settlement and as mandated by law.
In March 2012, the UK’s Telegraph reported that the license of Yes Loans has been revoked due to what the Office of Fair Trading (OFT) calls “deceitful and oppressive business practices.” However, the Internet doors of the credit broker remain while the allegation is on appeal.
In a joint statement by Yes Loans, Blue Sky Personal Finance and Money Worries, the cash advance loan facilitators said that they were being unfairly targeted and vowed to challenge the accusation.
The general public is often quick to criticize cash advance providers for what it claims to be exorbitant interest rates. However, in order to provide a super-fast service with no credit checks, there is a premium required. If you are a payday loan patron who manages to pay what you owe on the next paycheck, you are a happy camper. Hence, a good rule of thumb is never to mess with the service or else, you will get what you deserve.