Beware of Predatory Lending Practices in Quick Cash Advance Loan

These days it seems as if you can find a quick cash advance loan lender everywhere you look. Because of this, it is highly possible that you could get a hold of a fraudulent or predatory lender if you are not extremely careful.

What the Experts have to Say

Many financial experts and counselors are warning people about these quick cash advance loan lenders. The experts consider these lenders more as predators. Many people feel that they aim at borrowers promising quick cash, but are truly just providing borrowers with a beeline to worse debt. Many people who are borrowing these loans take out as many as 10 loans a year. Lawmakers are considering putting considerable restrictions on these lenders to keep people from getting into worse debt in the long run. One thing that they are considering is dramatically cutting the interest rates on these cash advance loans. Also the lawmakers would like to arrange it so that less money is available to borrow. This is supposedly to keep people from getting in worse debt than they are already in.

What the Lenders Think

Quick cash advance loan companies have much to say about this. They feel that if the lawmakers inflict more stringent rules on them that people would then be at the mercy of illegal and fraudulent loan sharks online. These online lenders also feel that it is unfair to criticize their practices. They feel that they are a safety net for people in times of financial stress. While many people feel like the interest rates on these loans are simply outrageous, the lenders feel otherwise. They argue that they keep nothing hidden and that their fees are clearly posted on their websites. They also stress the fact that with many of these loans you can borrow the money for free up to 24 hours and have a right to change your mind during that time.  Many financial experts and lawmakers feel like these loan companies target a lower income class of people. The loan companies totally deny this practice.

Two Sides to Every Story

In recent years a few of the online lending institutions and companies have been slapped by lawmakers. Though many of these companies were compliant with the regulations and these companies feel that the promise of new rules is largely unfair. The lawmakers are considering lowering the maximum loan amount from $700 to $500 dollars. The interest rates would then be cut to 10%. Another proposal would make the entire yearly interest rate around 36%.

Make Better Choices

Experts agree that the best thing that borrowers can do is learn to manage their finances in a better way. If they do that, they can prevent themselves from ending up in a situation where they have to borrow a quick cash advance loan. It is truly a personal choice. If you are in desperate need for some fast cash, these lenders can be very beneficial. If you can find another way to make ends meet it is advised to do so.