Iowa lawmakers are once again trying to target the payday loan industry and shut it down. They are trying to get the Iowa state legislature to limit the number of loans a person can receive. They are giving the reason that payday loans drive consumers deeper into debt.
These lawmakers have previously tried to lower interest rates on loans and cap interest rates which have both failed to gain enough momentum to pass.
Payday loan industry experts argue that payday loans give consumers a chance to get fast cash when they need it. They point out that it is an emergency cash fund that some people so desperately need. It keeps banks from getting even higher interest rates on bounced checks and from giving all of the money straight to the federal government.
Lawmakers are calling for a 36% interest rate cap on these loans but are skeptical as to how much support they can receive from the state. These same regulators are calling for lower car title loan caps as well as caps at $21 per $100 loan fees.
Even though regulators are calling for these changes, a lot of them fail to realize the relatively small interest these consumers are paying. If you were to bounce a check with most banks, even if the check is only for $15, chances are you would be paying a $30 bounced check fee. That is upwards of 200% interest making the consumer pay $45 on something that was originally supposed to cost them only $15 to begin with. Some banks may tack on even more fees in the form of overdraft or overdraft protection fees, and additional fees unknown to us, causing even more problems to consumers.
Don’t forget also,that if you decide you don’t need the loan, you can withdrawal from it if you do so usually within 5 business days. This means that you don’t have to pay the loan back at all if you get the money you need in time. Banks won’t give you your bounced check or overdraft fees back to you if you insert money within a given amount of time. That would cost them money. No credit checks are required either, you can get cash when you need it, anytime, as long as you have a job, and can prove you can pay back the money being loaned to you.
The problem that regulators have with the industry is that sometimes people don’t consider it a short-term financial solution and therefore get themselves into revolving debt because they are continually tinge out loans that they can’t pay off. When people understand that this is for short-term solutions only and if they have problems with debt or credit they need to talk to a counselor instead of taking out short-term loans the industry and consumers thrive.
Check City offers these kind of short term loans to you. Payday loans and cash advances as mentioned above should not be used as long term financial solutions and if you are having long term financial difficulties you should talk to a debt counselor instead of getting a payday loan. However, if you are looking for a quick fix to a short term problem, payday loans are the solution for you. You can get a short term loan for a small fee and pay it all off on your next paycheck. It’s easy and much more affordable than a bounced check or overdraft fee. Look for the Check City location nearest you to get started or call us on our toll free number to get started today. (866)294-4672 Payday Loan by Phone. Check out these maps to see if there are Check City locations in your area.
