Bad Credit Payday Loans Online May Offer Better Value Than Previously Thought
BadCredit-PaydayLoans.net reviews independent research showing that consumers that are prevented from accessing bad credit payday loans online are forced to resort to more expensive and financially damaging alternatives.
MIAMI , Florida, April 24, 2013 /PRNewswire/ --
The pressure against the payday loan online industry from consumer action groups, state legislatures and the federal government has resulted in a number of U.S. states prohibiting residents' access to short term lending services. Although payday lending is not a long term solution to money shortages, a study by the U.S. Federal Reserve Bank has shown that prohibiting them altogether creates more enduring adverse financial consequences for vulnerable consumers with bad credit scores.
Thirteen U.S. states including New York, Georgia, North Carolina, Washington D.C and Maryland have statutes that expressly prohibit payday lending and consumers in these states must find alternative bad credit cash advance options. However, the U.S. Federal Reserve Staff Report of 2007 focused on the effects of the prohibition and discovered that states with total bans on pay day loans have a higher number of borrowers seeking more expensive and unregulated sources of emergency extra money, such as overdrafts and loan sharks respectively.
In a high proportion of these states, the result was longer-term debt and, in the case of consumers from Georgia, more bounced checks and complaints reported to the Federal Trade Commission about unfair debt collection practices and dubious lenders. Georgia and North Carolina residents also had higher Chapter 7 bankruptcy filings than compared to other states.
A further study confirmed this trend. The New York Federal Reserve Bank Staff Report, "Defining and Detecting Predatory Lending," concluded that online cash advance and payday loans were of benefit to consumers by offering "preferable alternative" credit in a market that did not typically offer underserved bad credit consumers viable or accessible options. The report opined that short term lending did not detrimentally affect the long-term financial health of consumers; on the contrary, as these loans were deemed to help individuals and families to "better manage their finances" and that consumers using them responsibly were less likely to have defaulted on a credit repayment in the previous 12 months.
Online specialists such as BadCredit-PaydayLoans.net can introduce eligible consumers to reputable lenders offering affordable and fast emergency online cash advance solutions, even with bad credit. To learn more or apply with no obligation, visit: http://www.BadCredit-PaydayLoans.net.
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