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Serving A Terrible Blow to The Idea of Fast Cash Online, Justice Supported the Debt Collection Companies in The Debt Collection Case

On Monday, it is ruled by a divided Supreme Court that no one can sue the debt collection companies if they attempt to recover credit card debt of years old from those who look for bankruptcy protection. To be more specific, according to the Supreme Court, no debt collection companies can be sued while trying to recover their years-old debt of credit card from people seeking bankruptcy protection. The justices ruled this verdict 5 – 3 in favor of the Midland funding. Though the fast cash online seems to be a great solution to get quick cash, still, with this new verdict being ruled, the consumer groups have received a terrible blow.

Yes, the 5- 3 ruling is nothing less than a shock or a serious blow to the consumer groups, who often complain about the debt collection companies to mislead people unfairly into repaying the old debts, even though the consumers are not required to do so under the law.

The court finally sided with the Midland Funding on Monday. Midland Funding is a debt collection company that was trying to recover a debt of around $1879, which have incurred by an Alabama woman for more than around 10 years ago.  The name of the Alabama woman is Aleida Johnson who had argued that the debt collection company named Midland Funding was totally wrong to try to collect the debt. She also stated a reason behind her claim. According to her, the company has wronged because as per the law of Alabama, there is a six-year limitation statute for a creditor for collecting the overdue payments.

Based on this very reason, Aleida Johnson had successfully avoided paying the debt of $1879. According to a federal appeals court, Aleida could have sued the debt collection company for attempting to collect the debt, based on the existence of Fair Debt Collection Practices Act. It is based on this Fair Debt Collection Practices Act in Alabama that a money collection company can be sued as according to the Act, all the money collection companies are strongly prohibited from making any misleading, deceptive and false representation in any way or trying to recover the debt by any unconscionable or unfair mean. This particular law prohibits any attempt of the collection companies in trying to collect the debts outside the statute of limitations, which is, in this case, is around six years.

However, according to Justice Stephen Breyer, this Act doesn’t apply in case of bankruptcy proceedings. Yes, writing for the majority, and breaking with his liberal colleagues, Justice Stephen Breyer confirms that any effort made in order to recoup years old debt during bankruptcy do not violate the law or the Fair Debt Collection Practices Act in any way. He said that the attempts made by the money collection companies were neither misleading nor false as technically the bankruptcy law supports such claims.

Breyer also added that the attempt of recovering the debt by the money collection companies, such as in the case of Midland Funding, was neither unconscionable nor unfair, as a bankruptcy trustee definitely can object to claims which are so much old that they no longer have to be repaid. And it is exactly what happened in the case of Johnson’s, which also reduces the concerns of that of the consumers might unwillingly pay a years-old debt.

Justices Anthony Kennedy, Samuel Alito and Clarence Thomas along with Chief Justice John Roberts also joined the opinion of Breyer. Though, Justice Sonia Sotomayor considered the practice to be both unconscionable and unfair.

According to Sotomayor, professional debt collectors and providers of fast cash online, have built a business out of filing unfair claims in bankruptcy proceedings to collect the debt and buying stale debt, assuming that no one noticed it. The dissent passed by her was also joined by Justices Elena Kagan and Ruth Bader Ginsburg, while Justice Neil Gorsuch preferred not to participate in the case.

Mr. Cordray, It’s Time to Step Down to Let Payday Loans Online Providers Breathe

CFPB or the Consumer Financial Protection Bureau is a controversial agency and continues to remain polarizing. The US Court of Appeals for the District of Colombia recently declared that the structure of 1 director followed by the bureau is unconstitutional. In light of the criticisms and the voters’ desire for a modification of the status quo, CFPB need to refrain from pushing regulations about payday loans online providers before the presidents enters his office.

It is common trend for federal agencies to implement some last-minute regulations when a new administration takes over the government. These regulations are usually rushed and supported by low quality assessment of the benefits and expenses. Since CFPB’s regulation can influence the financial well-being of tens and thousands of Americans, they should take time and act in good faith.

For instance, the proposed regulations on payday lending and arbitration have sparked a lot of public interest. 1.4 million comments have been received by the payday rule, which ranges from legal and economic analysis to people’s personal stories about how they quite terrified about losing access to important products and services.

The CFPB needs some time to carefully consider and reply to genuine concerns highlighted by the commenters. The staff of the bureau will really need to work 24/7 to be able to sift through, review and analyze the 1.4 million comments internally before the new administration takes over the reins of the government. Scrutinizing the comments of the arbitration rule is going to take some more time. The bureau’s proposed rule on arbitration and payday lending is going to influence significant change in the financial services market and affect so many consumers, along with their accessibility to credit. The bureau should give it the attention and time that it needs.

CFPB need to exercise control to get the rules right and to maintain legitimacy. Originally, the bureau did not have any accountability to the president and the Congress. Its structure was recently held as an independent agency by the decision of a federal appeals court. The court even said that the director of the CFPB is the single most powerful official in the entire US government, next only to the president.

The problem was addressed by the court and it gave the president the power to sack the director for various reasons other than neglect of his duty. The president has the authority to oversee the work of the CFPB and fire the director, just like for any other agency.

The CFPB also need to avoid taking aggressive actions for the interest of legitimacy until the new president decided on who he wants as director for the bureau. The future of CFPB is uncertain, and therefore, any new rules will be viewed as an invalid attempt to dictate policies. This can lead to the rules being overturned by the new administration and can cause even more uncertainties in the industry.

Instead of putting the financial industry under whipsaw policy, the bureau and its director need to step away from the pen. CFPB should spend some time to work through the information that it has received as response for its proposed rules. This way, the new administration will be able to make better, informed decisions. The major goals of the bureau is to protect the customers and promote innovation and access in financial products and that does not change. The best way for the bureau at this moment is to wait before inaugurating and announcing the final policy regarding payday loans online industry. They need to really take the time to evaluate and assess the whole situation.

Latest CFPB Payday Regulations are not as much of a Slam Dunk as the Bureau Believes

As you probably already know, the Consumer Financial Protection Bureau has introduced a new rule that the Bureau believes will effectively put an end to what they call “debt traps” that consumers allegedly wind up snared in due to the payday lending industry. The regulation is more than likely going to be challenged by payday lending advocates, some political leaders and those who work in the payday lending industry. There are many opposed to not just the new regulation, but the Consumer Financial Protection Bureau itself. There are charges being leveled that the CFPB, an arm of the United States government, is unconstitutional in its structure and that it lacks the official authority to implement any type of regulations on the short term lending industry.

When considering the CFPB and its new payday lending rule, it is important to consider not just the structure of the regulation, but the potential obstacles that the Bureau is likely to face in getting the new rule pushed through and made official. There are questions that interested parties need to consider.

How will the proposed payday lending rule actually protect consumers from falling into “debt traps” that some people associate with the payday lending industry? The rule is very comprehensive. To read through all of it, you’d have to be prepared to scour over 13,000 pages. But for all of the details covered in the rule, the descriptions for what makes up an actual payday loan are a big generalized. Some types of short term loans are covered, as well as some longer-term loans. Lenders who make these types of loans will need to comply with the newly created ‘ability to repay’ requirement covered in the rule. This is something that mortgage lenders and credit card companies have had to adhere to for a long time, but is new for short term lending institutions.

This requirement will force lenders to look into the potential borrower’s income, debt situation and then find out whether or not additional debt will work for the borrower. Will the person be able to make the loan payment with their existing debt level? Additionally, this rule forces lenders to consider everyday expenses, like food, utilities and other expenses that borrowers have to deal with. Here’s where it gets sticky – the lenders have to not only make these inquiries, but they have to verify all of the information. This means they will need to get paycheck stubs, credit reports and other documentation about each and every person they have to process loan requests for. These additional checks will likely make the costs of making loans so high, and the overhead costs of running a lending company so unmanageable, that many lenders will have to drop out of the market.

Will the rules even provide new levels of protection to American consumers?

Some experts believe that the new rule will prevent borrowers from “rolling over” too many loans, and that this will prevent people from getting into situations where they are rarely able to realistically pay off the principle of their short term loans. However, the elephant in the room is the fact that if the new rule effectively closes the doors of the majority of payday lending companies, then lower income borrowers, and people with low credit scores will have virtually no access to emergency lines of credit. The traditional banks are of no help to consumers with low incomes and subprime credit when those people need to borrow a few hundred dollars to keep their heads above water. By protecting consumers from loans that they don’t like, while potentially preventing those same consumers from getting access to short term lines of credit, the CFPB has shown that they have not paid a whole lot of attention to creating any type of rule that would benefit American consumers in a realistic manner.

The Clock Runs out on Proposed Payday Lending Regulation in Nebraska

A new change to the payday loan regulations in Nebraska – a change that was endorsed in full by the Greater Omaha Chamber of Commerce, along with TD Ameritrade – has died out. This proposal would have changed the payday lending rules in big ways, but will not wind up taking effect any time soon. The bill – 1036 – was introduced by way of State Senator Kathy Campbell from Lincoln. It was designed to cap interest rates on payday loans at just 36 percent. This cap represented a major reduction from where the loan fees – when amortized for an entire year – currently stand.

In addition to APR caps, the bill was also aimed at changing the way debts are collected, while requiring more reporting to be done on the payday lending companies doing business in Nebraska. However, the payday lenders can breathe a sigh of relief, since the overhaul failed to get past the Nebraska Legislature’s Banking and Commerce Insurance Committee. This means that the 60 local payday lending locations in Omaha, and more than 90 throughout the state will operate per usual for the foreseeable future.

Senator Jim Scheer is from Norfolk and is the chair of the committee. He indicated that time was a real factor with regards to the folks supporting this bill. Those same folks met a roadblock when it came to a relatively shorter legislative session. The session this year is 60 days, while the following year will be 90. Session days alternate every year. If the senator does not name a particular bill as being a priority it will more than likely not make it out of the committee. The bill is then to be talked about on the full Legislature floor. Campbell did not indicate that the payday loans bill was a priority.

Sheer said, “It got past the point of being named a priority bill, and without that designation, it had no vehicle to get anywhere on the floor.  It didn’t make much sense from the committee’s standpoint to move it into the general file if it wasn’t going to go anywhere.”

When the 90 day legislative session rolls around there may be more time for discussions and amendments to the bill via negotiations submitted from both opponents and supporters. In a 60 day session, though, lobbyists and other interested parties do not have as much time to arbitrate and come up with solutions. This process proves disappointing to those who have a stake in the proposal.

The executive director of the Women’s Fund of Omaha Michelle Zych said, “Quite frankly, we were really surprised that it didn’t make it out of committee.” Zych’s group was the organization that originally pushed for the new regulations. Her supporters criticized the fees that are currently permitted on Nebraska payday loans. They believe that there are not many other states that will allow these higher rates, and that the fees currently contribute to consumers getting stuck in “debt traps.”

Opponents of the reform, like Brad Hill said that the industry is already sufficiently regulated and that borrowers are stopped from rolling over loans that they cannot afford to pay back in time. Hill then told the hard truth that many people don’t want to hear about: the fact that people who need small dollar loans do not have anywhere else to turn, other than to local payday lending locations or to online lending companies. Time is on the side of the payday lenders in Nebraska, for at least a little longer. Both opponents and proponents of the regulation will likely turn out in force when the time for the 90 day session arrives.

Getting Out of a Sticky Situation

Being financially stable is something we all strive to accomplish. Unfortunately, life isn’t always that kind to us. One day, we can be living a great life, the next day we can be jobless and stressed out concerning how we are going to pay our upcoming bills. Fortunately, there is always a way out when it comes to you not having enough money to pay your monthly bills. Faxless Cash Advance Loans can get you out of a sticky situation when needed and can help you get you back on your feet.

Qualifying for a Loan

Car crash
Car crash (Photo credits: www.myparkingsign.com)

Unexpected Emergencies happen all the time. Whether you or your spouse get into a car accident, or your water heater needs to be repaired. Many people live on a fixed budget, so there are times when you need Fast Cash. Borrowing money from a bank may not be an option for people, especially with the high Bank Fees. Another reason that they may not be able to borrow from a bank is that they may not qualify for loans. Nowadays, the guidelines have changed, and they have become more stricter in who can qualify for such a loan.

Terms of a Loan

Payday Loans make it possible for you and your family to be able to get out of emergency situations. Following a budget is very important to many people. So, when we have unexpected things occur, and you don’t have money to pay for things, then looking into a loan could be a life saver for you. Look at the terms of that loan, make sure that you are able to pay it off within the time line given by the loan.

Finding a Way Out

We are not in control of accidents, and we cannot predict when things are going to go wrong in our lives. People get laid off from their jobs all the time. It is unfortunate, but it is a reality. If you are able to save for such emergencies on a monthly basis, then that is advised. If you cannot put money aside for such things, then know that there is a way out if you ever need it. That way involves cash loans.

Getting Things Done Slowly

One of the most important things that you can do in your life is to take things slowly. While it is nice to think that you can jump onto a situation and make it right, the truth is that, well, going about something quickly is not always the way to get it properly taken care of. Take an unexpected financial emergency for example. While it is nice to think that you can get a situation taken care of within a matter of a couple of minutes, the fact is that you never want to rush into a situation when you don’t have to. Even if things tend to look a bit “murky”, it is important to recognize that you at least have the time to do your research in order to get the outcome that you are looking for. When it comes to getting the money that you need to pay off a monthly bill, you need to really look at what your options are for Payday Loans.

Taking Time To Look

All it takes is a couple of minutes to learn about what you are going to need for a payday loan. Info is available both online, and with the professionals who give said loans. It is not just about going out there and trying to get a loan quickly, it is about making sure that you take the time to figure out a loan that is going to not harm your financial future. After all: you want the type of loan that is going to give you the money that you need, not fees and penalties that will harm you for months on end.

Why Payday Loans Make Sense At Times

affiliates_bgWhen you need money to pay off a bill, it is important that you are able to take the time to figure out what the right type of loan is for you. With all of the loans that are out there for you, it is important that you don’t rush into taking just any loan that is out there. When you are looking for a loan to take care of an unexpected bill, you want to take a look at what Payday Loans can do for you. Here are four items you should know about a payday loan:

You Can Get The Exact Amount Of Money You Need

Why take out more money that you need, especially when you know you are going to have to pay it back for interest. When you get a payday loan, you need to make sure that you are able to get the exact amount of money you need, typically between $100 and $2500.

You Are Borrowing Your Own Money

Because you are getting the loan based on your next paycheck, you are essentially borrowing your own money, with the idea that you can pay it back when you get your paycheck.

You Can Get It Quickly

Payday loans can typically be completely in a couple of hours. Why wait days for a loan when it is only going to make a financial issue worse over time.

You Pay It Off Quickly

Because you can pay it off with your next paycheck, you don’t have to worry about an extended payoff which can cost you a lot of money in fees and penalties.

When The Unexpected Hits

debt-consolidation-loan-woman-1Life is full of unexpected financial issues. While there are a whole lot of things that can hit you by surprise in your life, it is financial issues that can pack the most wallop. Luckily, for these types of situations there are going to be Payday Loans that can help you out. Here are four types of situations where a payday loan can help you out:

Car Issues

There is nothing worse than having to take your car in when you notice an issue. Actually, the only thing worse is going to be getting the bill at the end of said repairs. When it comes to taking care of the costs that comes with the car issues, you need to take a look at the payday loans that can help you out.

Trips To The Emergency Room

Even if you have medical insurance, a trip to the emergency room can cost you a pretty penny. If you are on a fixed income, it can throw your monthly budget into chaos.

Unexpected Bills

Some bills you expect to come each and every month; other bills are going to come when you don’t expect them. When you get an unexpected bill, you need to look for ways to pay for the bills that you do expect to get on a monthly basis.

Problems Around The Home

When you need to call out a professional to help you around the house, it is going to cost you a good amount of money. To help your finances, make sure that look for a payday loan that can help you out.

Finding Quick and Easy Payday cash advances

cash-advance-lenders-help-any-time-110202-300x242Providing for your family is the most important thing that you can do, and when you suddenly have trouble doing that, it can get extremely frustrating for you and your family. Life can get pretty hectic, with everything that we have to do daily to help provide and make our families lives better. From getting the kids ready every morning, to dropping them off at school, football practice, dance recitals, and not to mention still having to go to work to take care of your family monetarily. Everything that you do for your family is extremely important, but what do you do when you are in a difficult situation and and need a little extra cash? perhaps you need to go on an emergency trip, or maybe you got into a little fender bender in the car and you need to get some repairs made, or you have an unexpected bill pop up out of nowhere…what do you do in these situations? In times like these, a pay day cash advances type of loan is exactly what you need to take care of your family and have the piece of mind that you need to keep rolling on and doing your thing, so that your family can keep on going.

Payday Loans Are Quick And Painless

Pay day cash advance loans are very special and different than many different types of loans that you can normally receive from your banking institution. A fast and quick pay day cash advance loan can be exactly what you need in your situation to get the cash that you need to help your family in your financial situation. A fast cash pay day loan can be a very good thing for many people looking to do something easy to get their family the money they need to get their lives going again.

Payday Loans Are Good For Almost Anyone

People have many different reasons for needing to get a quick fast cash pay day loan. Many people that are in need of a fast cash pay day loan do not have such good credit. Most banks will easily refuse someone looking to secure a cash loan if they have bad credit, but that’s usually not the case when it comes to a quick and easy fast cash pay day loan. The only usual requirements that fast cash pay day loan offices usually have for getting approved are that you make enough money that the loan can get repaid. Getting fast and easy cash advances for bad credit are simple with fast cash pay day loan offices. Another reason many people go for the fast cash quick and easy pay day loan is that it really is easy and fast to acquire your loan. Most places will have your loan available to you within the first 24 hours after you are approved for your loan, and some places can even have your cash to you within a few hours, and the approval process is also quick and easy.

Cash Advance Pay Day Loans Done Online

Acquiring a fast and easy pay day cash advance loan sounds easy enough, but many people simply do not like having to go to town to search out a quality pay day cash advance loan office. Nowadays, you can find quality fast cash pay day advance loans online. Now there is no need to pick up a phone book and look up different pay day cash advance loan offices, you can go online and research all of the different benefits that the various offices can provide for you. If you still don’t want to leave your house, now you don’t have to. Most people don’t actually want to go out to the fast cash pay day loan offices and talk to the people in person, and if they can help it they would just do it all from their home. Well, now you can. Many different places now offer a way to go online to apply for your fast cash pay day loans. No need to leave your home, now you can handle all of your payday loans online stuff from your own home computer and never need to leave the house. Very convenient for people looking to acquire cash advances online.

Pay Day Loans Can Help You Out Of A Tight Spot

If you are looking for quality pay day cash advances, make sure you do your research and find a quality reputable place to apply for your quick and easy fast cash pay day advance loan. Be prepared to handle whatever situations that life can bring you. Life can throw you many different types of curves, but don’t let that distract you from doing what is the most important thing, and that is providing for your family. If you are in a quick financial emergency and it can’t wait for pay day, then it may be time to research a quality quick and easy fast cash pay day loan. It may be the smartest thing you do to help your family out.
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