The online payday loan and cash advance loan are under attack by state regulators who make outlaws of lenders who make loans to the guy with more day than pay. Cash is good, but sometimes a credit line to borrow from is the only way to make ends meets until the next payday. Short term business lending happens all the time as receivables financing.
Those lucky enough to have a friend or a relative to play bank keep under the radar, but even here there is a high interest rate paid in pride and self-respect. The law doesn’t consider the hit on self respect a borrowing charge. Relatives may demand low or no fees but what about the self reliant person who doesn’t want to borrow from relatives or make their personal financial situation somebody else’s ear full? An online payday loan application form doesn’t talk and the net doesn’t gossip about money.
The pay day loan borrower isn’t measuring quality of life as an APR. Maybe it means keeping the lights on or having the car running to get to work on Monday. Yep. Payday lenders only make loans to customers with a regular job and a bank account. Middle America without the high limit credit card or the open home equity line they can go to in an emergency. Should they be denied this cash advance loan service because a state regulator doen’t like the fee they would owe? Who should say that the online payday loan borrower is better off paying $35 to Bank of America for a bounced check fee, or $35 extra to the utility company, than the $35 fee to a pay day lender? Is that the proper role of state government?
