Lenders And Credit Loans Online Payday Loans

1200 Words Dec 7th, 2016 5 Pages
Lenders who offer bad credit loans, including online payday loans, personal installment loans and auto title loans, have come under increasing attack in recent years. The Consumer Financial Protection Bureau, or CFPB, has been the most vocal critic of these lenders. The CFPB published its proposed regulations for short-term, small-dollar loans in June 2016. Included in the 1,341 pages of new rules and explanations is a section that deals specifically with lenders who offer online payday loans. Despite the pending proposed regulations and the criticism leveled at the lenders, however, the number of borrowers seeking an online payday loan continues to increase.

Why Payday Loans Online Continue to Increase Despite Criticism of the Industry
In recent years, many states and municipalities have passed laws that have made it difficult or impossible for payday lenders to operate a traditional storefront. However, as multiple witnesses pointed out during testimony before the U.S. House of Representatives Committee on Financial Services, outlawing a product is not the same as eliminating the demand for the product. In simple terms, people want the ability to borrow small amounts of money when they need to handle a financial emergency, and if they cannot deal with a lender who has a store, they will turn to a lender who offers online payday loans.

However, there are other reasons for the increasing number of people looking for an online payday loan. Unlike stores, websites are open…
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