Customers Are Satisfied With Online Payday Loans, According to Studies

The cash advance loan industry is ecstatic about a new consumer survey that revealed that many of their customers will happily take out the costly loans again. In fact, the majority of customers polled in the survey were satisfied with their loan. This can come as a surprise to those who consider these loans, which have interest rates that can reach 400% per year, to be predatory lending. However, because the payday loan industry conducted the survey on its own, the results may not be as surprising as they appear. view publisher site for more info on this.
The payday loan industry specialises in providing short-term loans to people who require a few hundred dollars to pay their bills until their next paycheck arrives. The borrower will receive the loan for fourteen days and will have a postdated check for the loan sum plus interest to the loan company. The borrower will repay the loan in cash within fourteen days, or the loan company will deposit the borrower’s check. Although the typical loan ranges from $100 to $1500, interest rates range from $10 to $20 per $100 borrowed. The interest paid on a two-week loan can add up to 400 percent or more per year when calculated as an annual rate of interest.
People who are against fast cash loan shops, and there are a lot of them, argue that the lenders take advantage of poor people who have few options for loans and serve the section of society that is least willing to afford such high loan fees.
The quick cash loan industry, on the other hand, disagrees. On its website, the Community Financial Services Association of America, a trade group for the cash advance loan industry, provides the following information:
The organisation claims that their typical client is not impoverished, but rather receives between $25,000 and $50,000 a year, owns more than 40% of their homes, and has some college education. They go on to say that this demonstrates that their average customer is not a member of the working poor, but rather a member of the middle class.
However, a $25,000 salary isn’t necessarily lavish, and more Americans own their homes than at any other point in history. $25,000 could be considered less than an entry-level salary for those with a college diploma. In fact, the average cash advance loan customer is less well-off financially than the majority of people, who have other options for obtaining cash, such as credit card advances and bank loans, both of which have significantly lower interest rates than payday loans.
The industry does correctly point out that the fees charged by fast cash loan shops for small, short-term loans that are paid back on time are smaller than the fines imposed by banks for bounced checks or overdrawn accounts. Bank service fees for bounced checks, on the other hand, aren’t fees or interest; they’re punishments designed to deter bad conduct.