Wednesday, December 18, 2013

Short term "Pay Day" Loans

I find it absolutely ridiculous that NY or any other state for that matter believes they can regulate the legitimate short term lending companies and the Native Americans' lending practices but cannot find a way to regulate the exorbitant fees charged by "sanctioned" banks for the same "short term lending" programs they run under the guise of overdraft protection programs....

I believe that those who are in emergency situations should have a choice of how they obtain the funds needed to cover that emergency rather than being forced to follow the "Accepted" way of doing things...Yes I do understand that these loans carry a heavy interest rate and some companies that are not quite above board use predatory practices to get you hooked and keep you coming back but when you add it all up it is still cheaper when totaled than the fees charged by banks either as loan origination fees or overdraft fees if the consumer is not eligible for a typical loan...I believe that state regulators need to crack down on those who are scammers or use those predatory practices and leave legitimate lenders alone...
I also believe that those consumers who are complaining about these loan companies for the most part did not fully investigate the company they wanted to work with making sure that it was legitimate and not using predatory practices....But the complaints that really get to me are the ones that come from consumers who after investigation finds the company to be legitimate then doesn't take the time to fully read the contract thus when they started paying back the loan they were caught off guard by the way these short term loans work and the actual interest they needed to pay...
This total confusion about these amounts is completely the consumers own fault and not the fault of the legitimate loan company which stated in the contract what the interest rate would be, how much the consumer would have to pay and when the payment was due at the time of signing for the loan... This is the reason why I believe if the company is legitimate with all paperwork in order and the consumer is complaining about the interest and fees paid then they should just be given a response of "Next time read before you sign and please stand up and take responsibility for your own actions because it is up to you to make the right choices"...This type of complaining should not produce all these unnecessary regulations on these legitimate companies....

So in conclusion for any one who chooses to use these companies be sure to do the leg work first using the internet, the Better Business Beaurau and other business report/complaint sites fully investigate then read your contract in it's entirity before you sign...some of these companies actually have lower interest rates and fees due to competition it just takes a little hard work to find the correct fit for you the same as with any other financial decision you make...

For the government:
Instead of forcing people to make the decisions the government thinks are best for them it is time to let them make their own decisions and learn from their own mistakes...It is time to crack down on the scammers and leave the legitimate companies and Native Americans alone letting them have their commercial ventures...

As to the regulations limiting the Native Americans's ability to do business with people not living on the reservations...The Native Americans have a right to sell products and services to anyone willing to complete the transaction with them...They are a Sovereign Nation doing trade in this country and the same as any other government body within this country they were given the right to do so and it is time these rights were defended instead of stepped on...