Payday Loans – Loophole allows payday./auto title loans


Payday loans are cash advances due by the borrower’s next payday. Auto title loans are similar but are secured with car titles. Borrowers of these two types of loans can incur fees from both their lenders and their banks and lose their vehicles, even if they’ve paid hundreds of thousands of dollars in interest and fees.

A loophole in Texas law allows lenders to charge an annual percentage rate of more than 500 percent. By operating as “credit services organizations,” these lenders escape regulatory oversight that apply to other lenders. They do billions of dollars in business around the state each year.

These dangerous loans hand out thousands of dollars with as little documentation as a bank statement, a pay stub or a car title. They tout “no credit restrictions” and no background check.

If it sounds too good to be true, it probably is. Read the fine print.

For holidays or any special occasion try other ways besides breaking the bank. Use layaway options, fine ways to make extra money, consider homemade gifts or just give yourself by spending time with your friends and loved ones.

If you still think you need a loan try a credit union or check out new peer-to-peer lending groups online. Just be sure you do your homework.

source here.

Related Post :


Other post:


Incoming search terms for the article:

bad credit student loan no cosigner,computers internet blog,


Leave a Reply