Payday Loan Times

Faxless payday loan lenders are on the offensive, making voluntary consumer protections.

But they aren’t enough. Quick payday advance lenders are predatory businesses, taking advantage of and making worse many people’s financial insecurity, and we wish that legislators had not allowed them to do business in the state.

Last month, payday lenders said they would allow some borrowers more time to repay loans and end ads that promote loans for frivolous purposes, such as vacations.

Those are shallow attempts at protections.

Bad credit cash loan lenders offer short-term loans that consumers repay with their next paycheck, but those unable to pay end up with fees that amount to more than 300 percent interest on an annual basis.

Oregon approved an interest cap of 36 percent for payday lenders, and Congress imposed the same interest rate on military payday loans.

But even 36 percent interest is a tough rate for people who live from paycheck to paycheck.

No, they shouldn’t be living like that. But the reality is that people often find themselves in that sort of position.

And we shouldn’t allow some to profit so disproportionately on someone else’s misery.

The Oklahoma Department of Consumer Credit is warning Oklahoma residents about solictations from out-of-state, online payday loan companies and other financial services.

KTEN’s Andrea Kurys had the report.

Officials say the number of complaints filed regarding online offers for loans have been steadily increasing.

In the state, when a customer applies for a payday advance, there are strict requirements in place intended to protect consumers. The loan companies must verify information on employment history, check the credit of applicants and immediately inform the individuals about interest rates and fees associated with a loan.

But unlicensed, out-of-state, operators may not provide any consumer protections - and experts say fees and terms can exceed Oklahoma limits.

Ardmore credit agencies advise potential cash advance loan applicants to do all financial business in person if possible and avoid giving out any information online. Tammy Pease, the assistant manager of ‘Your Credit’ said:

“I would not give them any confidential information regarding myself or anyone else and tell them if they need information from me, that they can give me an address that I can actually physically go to and then give them my information myself.”

Pease says trouble with payday loans from out-of-state lenders can damage your credit score.

Complaints about any cash loans can be filed with the federal trade commission at www.ftc.gov. The FTC works with consumers to prevent fraudulent, deceptive and unfair business practices.