Web Payday Loans
Web payday loans(a.k.a. Internet cash loans) are marketed as convenient sources of cash during emergency cases or even when money is just tight. This, plus the added attraction of 'quick' and 'guaranteed loan approval' tacts have made Internet payday loansextremely popular among consumers.
Web Payday Loans- The Great Debate
But there is also increasing concern about web pay day loans. Consumer protection advocates say people having cash problems would be better off if they refrain from securing web pay day loans. One state is already calling for the ban of the marketing of web loansto consumers – Massachusetts.
The state has even gone so far as appealing to companies to stop accepting advertisements from websites offering Internet payday loansand other forms of web cash loans. Why? Massachusetts firmly believes that these websites rip off consumers by offering easy-to-get loans that need to be paid back by as much as 130% (loan amount plus interest)!
Payday loans are small, short-term loans. Borrowers are expected to repay this type of Internet cash loanthe following payday.
Failure to do so results in additional finance charges on the borrower's bank account. In cases of repeated extension of the web payday or Internet cash loan, the finance fees can add up to hundreds of dollars, while the original loan remains unpaid.
While payday loans and other web cash loans are not prohibited in many states, they sometimes breach state laws on small loans.
For example, the annual interest rates of some payday loans can go as high as 300% or carry finance fees of $30 or more. These may violate some states' laws that have set annual interest rates and finance fees below these figures.
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