The Payday Loan Industry May Change, But We Don’t Need To
No Way OutPayday loans were always a fast way out for borrowers, but ultimately, it would cripple them in the long run. The payday loan industry and their lenders had the power to provide people with quick cash, but predatory practices would charge high-interest rates and short-term pay periods. Thus when borrowers couldn’t afford to pay them back in that time, they were forced to take out additional loans and increasing their debts.
Rocking the World of the Payday Loan Industry
It was recently announced that the Consumer Financial Protection Bureau has proposed new rules that would limit payday loan predatory practices and bring borrowers out of their cycle of debt. These new rules will, indeed, dramatically change the payday loan industry, although lenders such as Fox Title Loans has already established an honest and reliable standard in their payday loans.
The payday loan industry has been highly criticized for these deceitful practices, as the industry is worth for about $38.5 billion and relies on borrowers to take out loans again and again. They are practically setting them up to fail at their expense.
One of the proposed rules by the CFPB is a “full-payment test” that would require payday lenders to verify that borrowers has the ability to make payments and meet payments for living expenses and important financial obligations.
Another significant move is to limit the number of loans that lenders can re-issue or refinance to the same person. Lenders would be prevented from issuing another loan to a borrower within 30 days after paying off a short-term payment.
A tremendously significant rule is the regulation of penalty fees by lenders. They often have access to bank accounts of their borrowers and can automatically withdraw funds repeatedly. This can trigger massive bank fees and the loss of the borrowers’ bank accounts. With the proposed rule, lenders would be required to provide a written notice to the borrower, around three days before an attempt to withdraw from an account occurs.
A Title Loan Lender You Can Rely On
For now, these proposals by the CFPB are up for public comment until the regulations are finalized on September 14, 2016. Whereas many of these predatory payday lenders are finally being hindered, Fox Title Loans is a car title loan lender in Los Angeles county that offers quick cash and no credit check loans, but offers no short-term repayment plans, no high-interest rates rates, and does not aim to set up borrowers to fail. We make our payment plans custom made for you. We want to make sure that you can pay back your loans in the manner that fits you. Furthermore, we take pride in helping individuals from all types of financial backgrounds; we don’t check your previous credit history.
As we are also now open to approve loans for new cars, old cars, trucks, and commercial vehicles; we hope to help you get out of your debts and make your loans as simple as possible. Just after one meeting and filling out of form, you’ll be able to get your loans the same day and keep your car as well. Complete our online application form or call us at (818) 646-0711 to get started. We have offices in Los Angeles, Oxnard, and Van Nuys. The payday loan industry may not be changed as of now, but Fox Title Loans will still be your most reliable lender in Los Angeles for satisfying payment plans and loans to help you out of a bind.