Check Advance Info - What's New Archive (March, 2005)

What's New > March, 2005 What's New Archive

Tuesday, March 15, 2005

Its a crazy payday world out there, most of us living paycheck to paycheck, everyone needing a helping hand now and them. College students, brand new desk jockeys, low-income professionals in need of a financial fix, these are the people who most benefit from payday loans, and these are the people Check Advance Info is trying to assist. Unfortunately, men and women in the American armed services fall into all three of the above categories, and military payday loans are among the most widely used and abused forms of payday lending in the country today. No matter how much information is just drifting around in Cyberspace for everyone to see, military loans continue to be a problem because the need for financial assistance will always remain and the profit in that assistance will always draw the greedy financiers. There is really nothing we can do to stop the abuse of the payday advance other than to increase the awareness.

What laws are made and why they won't work

There have been attempts to create some law and regulation of the payday advance industry, but every proposed law takes away from the very aspects of a payday advance that makes it so useful:

some laws would require a credit check, making bad credit loans once again a real option. But this would be bad for the payday advance in tow main ways: decreased speed and increased rejection. Less people would qualify for bad credit payday loans, and the overall system would just take longer, destroying the attractive speed of fast cash lending.
Others would set usury limits on the loans, bringing the cost for an advance from $20 to about $5 for a two week period. While this would seem to benefit the consumer, it would destroy the profit incentive to be in the advance industry, and the speed, effectiveness, and omnipresence of the payday advance opportunities would dwindle right along with the big money profits.

Payday lending is truly a double edged sword, offering fast financial assistance and a whole barrage of potential problems. The fact remains that however expensive, costly, and potentially dangerous, payday advances fill that void between slow, hard-to-qualify-for financial assistance, and no assistance at all.