Good Payday Lenders Struggle to Stand Out, Reports Pay1Day.com

MILWAUKEE, May 29 /PRNewswire/ -- The Payday Lending industry has received a bad reputation and is often a target of local, state and government regulators for regular audits. Also, increasing new rules and regulations often limit and restrict the operations of payday lenders. The main reason for that is not only because payday loans are very expensive in terms of fees and high interest rates, but because of a very few bad apples, mostly brokers, usually not direct lenders, who have performed unethical and predatory lending practices in the past and given a bad reputation to the whole industry.

It is important to know that majority of direct payday advance lenders such as Pay1Day.com play by the rules and follow a code of ethics. They put great focus on customer privacy and security and are clear about their fees. Moreover, some lenders work with their customers on flexible payment plans if needed.

It is not only out of fear of more state and federal regulation, but good lenders such as Pay1Day.com realize that, just like other financial institutions, when one provides good customer service they win returning customers and referrals from existing happy customers.

Payday lender, Paydayloantrust.com, focuses on the fact that they are a trusted payday lender with friendly and caring customer service representatives. Another payday lender, PaydayLoanjr.com, focuses on a paydayloan with a $300 limit, that way they can charge less fees and interest rates since they will be taking less risks.

"It is essential that payday lenders self regulate as much as they can before more regulations and restrictions are placed on them by local, state, or federal governments," says director of finance at Cash USA Payday Loans. "It is also the right thing to do, to be honest with your customers about your fees and  assuring them that they can trust you with their private information." Direct payday lenders are often the cheapest and most trusted private source for borrowers who are looking for short term cash.

Law makers and legislators need to understand that the Payday lending industry is essential for the US economy because it helps with cash flow to underemployed working class when they run into financial emergencies. Also, payday lenders provide jobs. They employ hundreds of professionals ranging from loan officers, accountants, IT professionals, and customer service representatives directly and they pay heavy taxes and fees that generate local and state revenue. Moreover, they invest a great deal in commercial real estate for their stores and offices, and spend a lot of money on business to business transactions.

"Not all payday lenders are created equal," says a payday loan consultant, who argues that payday lending industry should be looked at with no bias. "There are payday lenders who practice good lending services and educate their customers about payday loans, and even sometimes advised them not to get a payday loan without them knowing the pros and cons, like Pay1Day.com did on their blog."

SOURCE Pay1Day.com