Payday Loans Blog

After heavy lobbying from both sides, the Washington legislature has struck a compromise bill on payday loans. While we at Check City strongly feel that the industry is self-regulating, we appreciate the legislature for having the sense to not put payday lenders out of business.

In other states, initiatives have been proposed to cap interest rates and effectively shut down payday loans in their states. Consumer advocacy groups were pushing for the same in Washington. But lawmakers saw through the lie that payday loans are predatory in nature.

So just what was the compromise? The bill limits a loan to 30% of a borrwers monthly income or $700, whichever is less. At Check City, first time borrowers can only borrow up to 35% of their monthly income. So that part makes sense, even if it is a little too low.

The bill also prohibits borrowers from having multiple payday loans at once. While this may protect ignorant and irresponsible borrwers from self-destructive behavior, it is very limiting on those who are responsible borrowers.

The bill also creates an installment payment plan for borrowers who default on their payment. Customers would have up to 90 days to pay off a loan of $400 or less, and 180 days to pay off a loan of more than $400. The bill is getting lukewarm responses from both sides thus far.

The point remains, regulating the industry in this way may protect the bad borrowers from making bad decisions, but it limits the responsible borrowers from taking advantage of all the short-term credit that can be available to them.

If someone dies from inhaling paint fumes because they painted the garage without any ventilation, do we then ban the sale of paint? Do we limit how much paint people can buy so that they cannot inhale a lethal amount? Do we require safety masks to be purchased with all paint? Where do we draw the line?

Apparently government thinks it is their role to stop consumers from doing something potentially dangerous before they do it. Running into a burning building is dangerous, but fire fighters are trained to do it. Feeding alligators in a zoo can be dangerous, but trained professionals handle it.

The point is you don't just going around prohibiting people from doing things that could harm them. There's a lot of people who understand the risks and know how things work and are in essence the "trained" professionals. Payday loans are used by countless responsible borrowers who use them becasue they need them.

The foolish few who abuse payday loans and borrow too much are always going to exist. Do what you want to regulate payday loans, someone will still do something stupid and blame it on the loan, not their own ignorance.

Consumers should be educated on how to properly use payday loans rather than be told what to do and dictated to. Many responsible borrowers are not going to be able to use payday loans how they need if the industry keeps getting slapped with more and more regulations.

A bill brought to North Dakota's House that would lower the maximum fees and lending amounts on payday loans was defeated on Tuesday by an overwhelming 88-5 vote.  The bill was looking to cut the fees from 20 to 15 percent, reduce the maximum loan amount to $250, and put a $300 limit on what an individual could borrow from a payday loan company.  The current limit is $600.   

Luckily, the House voted to defeat the bill.  The state currently has pretty strict regulations on the payday lending industry, and recognize the industries technology and policies on spotting borrowers that may be over borrowing. 

Ed Gruchalla, representative for Fargo, North Dakota, stated that the cost of payday loans are often cheaper than the overdraft fees that a bank charges.  This is particularly poingant due to the fact that there has been recent talks of plans to urge banks and credit unions to put these companies "out of business".  The ability of an individual to get a payday loan and then paying that loan back on their next pay check is a great benefit.  Instead of having a forced fee, they are able to decide what is financially best for them, and then make an informed choice to be a responsible borrower.

It appears that North Dakota representatives understand the needs of their citizens and are looking to encourage responsible borrowing instead of taking away viable financial options.  Enabling payday loan companies to continue a successful and helpful business is one way of showing this.  Excellent decision!

Pacific Financial, a loan chain based in Washington, agreed to pay a $2.5 million settlement to over 10,000 who were harrassed after they were late repaying their payday loans. The ruling ends a three year case that included customers who defaulted between 2001 and 2005.

It is important to understand that there are two types of payday lenders. There are lenders such as Pacific Financial, who operates as Loan Ex, Fast Cash Loans and Fast Cash, that disregard the regulations on the industry. Then there are lenders like Check City, who not only comply with all laws and regulations in the industry, but pushes to make sure other lenders do as well.

The collection tactics employed by Pacific Financial were admittedly illegal. When collecting from defaulted borrowers, there are certain rules collectors must follow.

These include not threatening borrowers with arrest and jail time, not using profane language, not continually calling at work and not disclosing the terms of the borrowers loan debt to other parties. Pacific Financial engaged in some of these practices and is no paying the price.

Unfortunately, the whole industry pays a price as well. When one payday lender engages in this behavior, it reflects badly on all payday lenders, even those of us in compliance with the law. Check City definitively avoids harrassing collection practices. Complying with all laws and regulations is very important to us.

We would hope that legislators take this into account during their legislative sessions. An entire industry does not need to be punished for the irresponsible actions of a few. There are plenty of good, honest payday lenders and borrowers out there. There are also bad, dishonest lenders and borrowers.

Let's urge our legislators not to put the good, honest ones out of business. Payday loans fill a valuable niche in our economy and should be allowed to continue doing that without endless interference.

Getting a Utah title loan can be a great service to many people.  But, what exactly is a title loan?  Basically, it's a short term loan against your automobile.  When you get a title loan, you pledge your car as collateral against the loan.  With the tightening of lending standards, it can be hard to borrow money from a bank or credit union.  Title loans provide a great alternative when you need a loan and are unable to qualify for another, perhaps more conventianal, loan.

Check City provides Utah title loans that are quick, easy, and convenient.  It allows you to borrowa against the value of your car, getting cash in minutes.  There are usually no credit checks and you can choose from several different payment options.  There have been some misconceptions that if you get a title loan, you turn over your car for the money.  With Utah title loans from Check City, you can drive away with both the cash and your car!

To get a title loan from Check City, you only need to remember a couple things.  First, bring your car and title, a picture ID, and proof of residence into your nearest Check City store.  You will then need to fill out a quick and simple application form.  A friendly and capable employee will then perform a quick inspection of your car, process the application and offer you a loan based on a percentage of the value of your car.  Finally, drive away with your cash! 

As always, Check City encourages everyone to be responsible borrowers and to consider your options before making a decision.  We love to help and serve our customers to the best of our ability.  A Utah title loan is one way that we have been able to meet the needs of the people we serve.

There has been a lot of talk and lies about the negative side of a cash advance lately.  It would be very beneficial if this was all cleared up.  Hopefully everyone will know the truth about cash advances.

First of all, a cash advance is the same thing as a personal or payday loan.  They are short-term loans that are applied for and then taken out for about two weeks.  That means at the end of the two weeks the amount that was borrowed plus the interest fee is due.  Once everything is paid off, the loan is complete!

Where people get hung up on is the interest fee.  When you look at the interest rate for a cash advance, you will probably notice it is a high number.  What you need to realize though, is that high number is an amount for an annual rate.

The interest rate on loans is measured with APR, which stands for annual percentage rate.  Since a cash advance is only two weeks long, measuring the interest as if it were taken out for a whole year skews the numbers.

To clear things up with a small example, if a cash advance of $100 with a 390% APR was taken out, the interest after two weeks would total to just $15.  That makes the amount due at the end of the loan come out to be $115.  That's a much smaller amount than an overdue bill charge or an overdraft fee.

 The most important thing to remember is that you control whether you want a loan or not.  So whatever you do, please use a cash advance responsibly.

On of the big questions with the new administration is whether there will be new legislation restricting or completely getting rid of payday loan companies. This new administration portrays itself as a protector of consumer rights, and there is more concern about legislation changing the current industry.

According to Obama's website, the President is planning on demanding more disclosure from payday loan companies and institute a 36% cap on all American loans. This site also states that he will “encourage banks, credit unions and Community Development Financial Institutions to provide affordable short-term and small-dollar loans and to drive unscrupulous lenders out of business.”

First of all, I can't understand why the President would want to force a valid industry out of business. I would assume that the main goal would be to maintain current employment and encourage greater opportunities for employment, not to get rid of thousands of American citizen jobs.

Rates are high to make a profit. If they dip lower and lower, companies-not just payday loan companies-will lose money. Let's name a couple other industries and situations that have higher APR's: credit card companies, bounced checks, negative credit reports-thus high interest car and home loans, negative checking balance fees, etc.

The difference in these is that, while these APR fees are in the hundreds, like payday loans, they are levied upon people for having financial struggles. Payday loans are accepted by people freely, with a full understanding of what the fee is beforehand.

Payday loan services are available to those people who need small, short-term loans. There are available because of need. Outlawing that financial choice is just irresponsible. Perhaps the rates will be capped, I guess we'll see. But, encouraging legislation that will drive payday loan companies out of business is ridiculous, and is ultimately taking away a useful service and legitimate jobs.

In a not too surprising move, U.S District Court has ordered seven online payday lenders to cease offering payday loans. The move isn't all that unexpected considering the array of laws broken by these lenders. Seems a few rotten apples are spoiling the barrel.

The companies were not being compliant with many laws. Loan terms and rates were not disclosed properly. Abusive collections practices were implemented. Hidden charges were assessed, contrary to the Truth in Lending Act.

Well, with payday lenders like this offering payday loans online, it isn't any surprise that so many people have a bad impression of them. But Check City resolutely and positively denounces such lending practices.

Check City never uses profanity and abusive language in collections, never threatens to throw people in jail and never fails to disclose all the terms of our loans. We believe in being 100% compliant with all laws and regulations that govern our industry.

We adhere to the Truth in Lending Act and all other regulations. As a member of CFSA, we are dedicated to promoting responsible lending practices. Hopefully more payday lenders will follow our example and the general public will haev a better impression of our industry.

Check City condemns the acts of these online payday lenders who violated consumer trust and industry regulations. This will never happen to any individual applying for payday loans at Check City.

You can get a lot of money from a title loan.  If you're stuck for lots of cash, and you need it extremely fast, go into Check City, where they will get you what you need.  Check City also offers payday loans to get money, but a title loan will give you a lot more.

That's because with payday loans, you don't need to have any collateral or anything in order to apply.  In order to get a title loan, you must have the title to a car.  This sheet of paper is used as collateral for the loan.  That way, you will be sure to pay back your loan on time and everything will work out how it is supposed to.

To apply for a title loan, go into Check City and leave the title to your car with them.  They will check out your car and let you know how much money you are approved for.  Then, drive away in your own car with your money!  Use it for whatever you want because Check City won't ask what you use it for.

You can pay the money back in portions and when it is completely paid back, you will be given the title to your car back and everything will be finished. Getting a title loan from Check City will help you get tons of cash really quick!

North Carolina's Attorney General, Roy Cooper, referred to payday loans as scams during the keynote address of Military Saves Week. He said being young and having a steady paycheck makes members of the military perfect targets for all sorts of scammers.

While Cooper certainly means well in helping families to manage their finances, he is way off in grouping payday loans with fake princes in Nigeria. Payday loans are no scam to try and con people out of money. They are short term loans that are not offered by anyone else.

Lots of people have need for short-term credit options, and many banks and credit unions do not offer them. Payday loans fill a niche in the economy that no one else will. This is not done to be a public nuisance or to scam anyone.

Sending fake lottery winning checks to people is a scam. That provides no service to anyone and is a ploy to steal money. Payday loans charge for a service they provide people. Like any commodity, payday loans can be used irresponsibly.

But the truth is a few bad borrowers shouldn't spoil it for the good ones. Military folks are no more targeted by payday lenders than anyone else. It is no longer legal to lend to military people anymore anyway. But is anyone getting mad that Ferrari is targeting only rich people?

Payday loans don't appeal to the rich because they have no need for quick cash generally. Those who are well off don't need the product, so of course they won't buy it. Payday lenders don't target anybody; rather, they offer a product that only people in financial difficulty would ever really need.

Check City unilaterally opposes scams of any kind. Payday loans are not a scam- they are a financial service that other lenders simply don't offer.

It's tax time!  Check City is a Utah tax service provider that makes it a stress free 'season'.  Every year people struggle to complete tax forms efficiently without large amounts of frustration.  I've experienced this feeling MANY times!  Tax season can either be easy and helpful (getting money back is always helpful!) or it can be stressful and discouraging.  Finding a quick and convenient tax service will help reduce the pressure of getting your taxes done on time and done correctly.

When you come to Check City you will be assisted by a friendly, experienced tax professional who will help you through the tax preparation process.  Check City will help you save money by taking full advantage of the deductions you are entitled to.  We will also charge you less than other Utah tax service providers. 

I have already used these tax services and all I have to worry about is controlling my excitement for getting my return!  Decrease your tax-related stress by going to your nearest Check City store and speaking with one of our tax service professionals to take full advantage of the best Utah tax service available!