Payday loans have had a bad name in the press, but new research confirms what industry insiders already know: payday loans actually offer freedom of choice in managing a household budget and without them, borrowers end up using less desirable alternatives for getting cash.

Online PR News – 26-October-2009 – Contrary to what the press may have us think, payday loans help people rather than hurt their finances. X9a.biz payday loans and the people behind them would like you to know the facts about this issue. There is a broad and powerful coalition working against the sector of the financial industry which offers payday loans to consumers. It includes people ranging from anti-poverty activists to the President of the United States, Barack Obama. They claim that payday loans exploit poor people by offering loans with bad terms to people who can’t seem to refuse them, whether it’s out of desparation or not knowing any better. The government has even gone as far as banning payday loans to members of the military and their families, saying these loans affect “military readiness”! Now President Obama wants to ban payday loans to all citizens, at a federal level.
X9a.biz, which offers payday loans, has always been more than just a website offering payday loans at good terms with friendly service. We’re also watchdogs on the industry and here to report that there’s new research on the topic of payday loans and whether they help or hurt borrowers. New studies show that households barred from taking out payday loans wind up using far less desirable methods to cover their expenses. One study involved households in Oregon, and was conducted by a Dartmouth economist.

The Oregon study involved a rate cap, which the state legislature had set at $10 per $100 borrowed and a minimum borrowing term of 31 days. A year after the limits were imposed, the number of outlets offering payday loans dropped from 346 to 82. The study concluded that Oregon residents were using less desirable methods such as utility shutoffs and overdrafts. The paper concluded that restricting access to payday loans resulted in overall deterioration of overall financial condition of households in the State of Oregon.

People who live in states that ban payday loans bounce more checks. They also have more comoplaints to the FTC about debt collectors hounding them, and they also file for bankruptcy protection at a higher rate. And this is data given by Federal Reserve research economists.

These findings are completely opposite of what critics of payday loans claim: that payday loans result in a debt trap for borrowers. X9a.biz has been offering payday loans to satisfied borrowers for years, and we’re happy to report that finally the American public is taking a good look at this financial product and realizing the benefits payday loans can bring to household across the country.

A no fax cash advance can help the average consumer, according to new research out this month. President Obama promised to “work to empower more Americans in the fight against predaroty lending”, but ask the experts who study the financial industry and you’ll hear a different tone. E-cash-advance.net is here to dispel the rumors and offer facts about the no fax cash advance.

Online PR News – 25-October-2009 – Opponents of the no fax cash advance claim that the industry exploits poor people by offering them loans with terrible terms. The reasoning here is that poor people don’t know any better, and that the no fax payday loan makes it easy for poor people to get in to serious debt. The no fax payday loan is lumped together with actual predatory products like no-documentation mortgages, high interest credit cards, and credit-default swaps.
The news is, the no fax cash advance is nothing like those other products, and nothing at all like what the opponents say. As a matter of fact, our payday loan customers are not as poor as opponents would have you think. Seven or eight out of ten no fax payday loan customers make more than $25,000 per year and two out of ten make more than $50,000. Half have attended some college, and nearly all have high school diplomas. This surprising information is from the Community Financial Services Association of America. Critics of the no fax payday loan industry have a group, the Center for American Progress, and their studies have come up with the same statistics!

So, your average no fax payday loan customer is not as dim as opponents want you to think. They do know better, and they still choose to take out no fax payday loans. Why is this?

Here at e-cash-advance.net, our terms are clear and our loans are simple. Our customer service is excellent, and we have repeat customers who have jobs, bank accounts. 90 percent of our payday loan customers repay their loans on time. And that’s a statistic that’s repeated in results of studies by the Community Financial Services Association of America, as well as state regulators. And this is compared favorably to the rates of payback on subprime adjustable rate mortgages, for example.

So you see, having access to affordable quick cash is important to thousands of people- our customers alone. Having a choice means being better able to manage your household budget. These customers are solid citizens with enough wits about them to make solid financial decisions, unlike the borrowers inaccurately portrayed by opponents of the payday loan industry.

Advance America, Cash Advance Centers, Inc.

SPARTANBURG, S.C., Oct. 28 /PRNewswire-FirstCall/ — Advance America, Cash Advance Centers, Inc. (NYSE: AEA) today reported the results of its operations for the nine months and quarter ended September 30, 2009.

For the nine months ended September 30, 2009, total revenues decreased 5.4% to $474.4 million, compared to $501.5 million for the same period in 2008. Total revenues for the quarter ended September 30, 2009 decreased 3.4% to $167.9 million, compared to $173.9 million for same period in 2008. These comparisons include the results of operations in Arkansas and New Mexico, states the Company exited in 2008, as well as operations in New Hampshire, a state in which the Company ceased making advances in January 2009. Revenue from these three states for the nine months and quarter ended September 30, 2008 was $10.1 million and $3.6 million, respectively. In addition, as a result of a new Ohio law enacted in November 2008, the contribution to revenues from our centers in that state has decreased dramatically. Revenue from Ohio declined by $16.6 million and $3.8 million for the nine months and quarter ended September 30, 2009, respectively, compared to the same periods in 2008.
Excluding revenues from Arkansas, New Mexico, New Hampshire, and Ohio for the nine month periods ended September 30, 2009 and 2008, total revenues decreased by 0.1% during this period in 2009 compared to the same period in 2008. Excluding revenues from those same states for the quarters ended September 30, 2009 and 2008, total revenues increased by 1.0% during this period in 2009 compared to the same period in 2008.

For the quarter ended September 30, 2009, total revenues for centers opened prior to July 1, 2008 and still open as of September 30, 2009 increased 1.8% compared to the same period in 2008.

The provision for doubtful accounts as a percentage of total revenues for the nine months ended September 30, 2009 was 19.6%, compared to 18.6% for the same period in 2008. For the quarter ended September 30, 2009, the provision for doubtful accounts as a percentage of total revenues was 23.1%, compared to 24.2% for the same period in 2008. For the nine months ended September 30, 2009, the Company sold approximately $2.2 million of previously written-off receivables, compared to $0.6 million during the same period in 2008. The Company did not sell any previously written-off receivables during the quarter ended September 30, 2009, compared to $0.1 million for the same period in 2008.

For the nine months ended September 30, 2009, the Company’s advertising expense was $15.4 million, or 3.2% of revenue, compared to $16.1 million, or 3.2% of revenue, for the same period in 2008. For the quarter ended September 30, 2009, the Company’s advertising expense was $4.2 million, or 2.5% of revenue, compared to $6.1 million, or 3.5% of revenue, for the same period in 2008.

The B.C. government has recently instilled new payday loan laws that will impact borrowing fees, rollover loans, and grace periods. BHM Financial Group is offering payday lenders a way to profit despite these new laws.

British Columbia, Canada, October 28, 2009 –(PR.com)– New legislation proposed by the government of B.C. states that payday loan companies will no longer be able to administer rollover loans. This places payday owners at a great disadvantage relating to outstanding loan debts.
BHM Financial Group is now offering some relief to payday owners in B.C. by providing them with a solution to these recent legal alterations. Payday facilities can now offer their clients BHM Financial car title loans.

Due to the new laws that the B.C. government has instilled to regulate rollover and borrowing fees, payday loan companies are finding themselves stuck with hundreds of dollars in outstanding debt. The companies are losing revenue because these new laws leave them unable to charge for this debt. By offering BHM Car Title Loans to clients with outstanding debt, BHM Financial Group will in fact be paying out their outstanding loans. Storeowners will see the loan paid back in full and stand to increase their profits. In addition to these benefits, BHM is offering a 10% commission incentive for loans referred by a payday lender.

BHM Financial Group provides installment loans to all of their clients. Loans are paid back in monthly installments of interest and capital, with a loan term of 1-4 years to suit the needs of the clients. Since loans are completely paid off at the end of the loan term, no rollovers are necessary. Additionally, debtors will be happy to learn that BHM loans are provided at lower interest rates than those charged with a standard payday loan. Payday facilities that take advantage of BHM’s car title loans will be able to turn lost profit into additional profit by offering clients an alternative to rollovers, and by offering larger loan amounts.

In addition to resolving the issue of these new government limitations, facilities that choose to present their clients with BHM’s car title loans will earn up to 10% commission per loan. These secured loans allow payday owners to offer clients larger loan amounts of up to $10,000 per loan. Some additional benefits to payday lenders are that BHM will fund car title loans, collect loan payments, and handle all loan documentation leaving little to no effort on the part of the payday lender.

The column written by the Alabama Poverty Project representative on Oct. 21 contains several glaring inaccuracies and unfairly categorizes the payday lending industry.

The experiences of the payday loan customers mentioned in the column are far from typical. It is possible that an unethical payday lender led to this woman’s experience, but it does not in any way represent the industry as a whole.
The payday advance industry also operates under strict state guidelines that protect consumers. Alabama only allows payday loans to be rolled over once. Our company, Check Into Cash, does not permit any rollovers. Also, state law outlines an extended payment plan option that allows consumers to pay off their debt in four equal monthly installments after a rollover.

There is clearly no way payday lenders can sensibly be blamed for the ills mentioned by the Alabama Poverty Project. There is also no way for a consumer to reach the much-hyped triple-digit interest rate mentioned in the column because a loan cannot be extended for a full year. It is unfair to judge short-term, two-week loans on an annual percentage basis.

Other alternatives to payday lending do not stack up either. Not everyone can turn to a family or friend for an emergency loan. Credit cards, the solution touted by the Alabama Poverty Project, come with steep fees that far exceed the price of a payday loan.

It is true that it’s not a perfect world, and consumers sometimes need to turn to short-term credit options like payday loans to make ends meet. But stripping away a consumer option like payday lending is not the answer, and will only stand to further hurt hard-working Alabamians.

Ryan H. Harris
Communications manager
Check Into Cash
Cleveland, Tenn.

By Wyatt Emmerich
President, Emmerich Newspapers
Monday, October 26, 2009 10:27 AM CDT

JACKSON — The law of unintended consequences is powerful, especially when the government is involved. One could argue this deep recession is a result of misguided public policy. In an effort to encourage home ownership, the federal government created incentives for lower-income people to buy homes they previously could not afford.

This created a huge housing boom and bust that has led to record foreclosures and undermined the financial system, which relies on housing stock for securitization.
It was a noble goal with a disastrous result. You can lead a horse to water, but you can’t make him drink. Home ownership requires a certain long-range stability that can’t be simply legislated. Some people are better off renting.

I write this with Ridgeland in mind. The very popular mayor, Gene McGee, has banned title companies, pawn shops, nail salons and check-cashing companies.

The goal seems clear and noble. Ban businesses that seem, shall we say, tacky, and the city will avoid blight. Ah, were it so easy! We could just ban poverty.

The Mississippi Center for Justice has jumped on the bandwagon, calling for a similar ban in Jackson.

The problem is that nasty law of unintended consequences. What makes for good politics can often produce undesirable public policy. Our economy is several levels more complex than most people comprehend.

Let’s take the payday loan business. Many consider this loan sharking with exorbitant interest rates. A hundred dollar cash advance costs $22, which equates to an annual interest rate over 200 percent.

Sounds pretty awful. Who would fall for that? Most people think only poor, desperate, ignorant people would be so foolish.

In fact, the average payday loan customer is 39 years old and makes $41,000 a year. They are making a rational business decision that saves them money.

Many people with decent jobs live paycheck to paycheck. They have families to feed and bills to pay. Most have a budget, albeit tight, that works each month.

But from time to time, the unexpected strikes. A transmission needs replacing. An air-conditioning compressor blows. A medical expense crops up. They are short of cash.

Here are their options: Pay overdraft bank fees of $40 a check. Miss a credit card payment that triples their interest rate for a year. Miss a utility payment and incur reconnect charges of $50 or more per utility.

Suddenly, the $22 title check fee seems like a smart transaction. Indeed, that option is at least half the cost of the other alternatives.

Mayor McGee isn’t accusing banks, utilities or credit card companies of being loan sharks and banning their existence. So why would he do so to the payday loan companies that are actually charging half the rates of these more respectable institutions?

Ah, the law of unintended consequences. By banning further competition, the landlords of the banned businesses can jack their rents, knowing that their tenants are no longer free to move. These hikes allow landlords a windfall profit at the expense of hard-pressed families. How does that help the Ridgeland citizens?

Luke Montgomery, a spokesman for payday lenders, says, “Cities should regulate through signage and storefronts if they don’t like certain appearances. They shouldn’t try to regulate the businesses themselves.”

“Suppose you asked your buddy to loan you $100 for a day so you could pay your utility bill and not get cut off. Then suppose you paid him back a day later and bought him a beer in return. Would you consider that to be unfair? It’s the same interest rate.”

Random thought for the day: Most workers have to take a drug test in order to get a job. They are then taxed and their money given to welfare recipients who can’t or won’t work. But the government doesn’t make the welfare recipients take a drug test to receive the money. How’s that for a double standard? Who’s more likely to be abusing drugs? The people who want to work or those who don’t?

If you thought you had a choice, would you take out a loan with an annual interest rate of 400 percent?

No one would. But every year, about 1 million Californians are desperate enough to do it. This sounds like loan-sharking, but predatory payday lending — the practice of issuing small, short-term loans in exchange for a postdated check and a massive fee — is legal in California and 34 other states. It can destroy the lives of the most vulnerable. It should be banned.

The Silicon Valley Community Foundation has released a report painting a bleak picture of payday lending in California.
These storefront lenders target the kinds of low-income and minority neighborhoods often ignored by banks. Their business is dependent on trapping people in a cycle of debt. A borrower may take out a two-week, $255 loan costing $45, intending to pay it off with her next paycheck. If she can’t, she must take out another loan, and then another, racking up hundreds more in fees she can’t pay — all for the same $255.

Loan Sharks

According to one study, payday loan applicants whose loans are approved are twice as likely to file for bankruptcy within two years as applicants who are rejected. The pileup of fees is the primary reason.

Why are these extortionist interest rates legal, when they’re banned for other forms of consumer loans? Because the payday industry has very good lobbyists.

In the 1990s, they persuaded the California Quantcast Legislature to exempt the fledgling industry from interest rate caps, arguing that the “deferred deposit transactions” are not loans but rather extensions of the check-cashing industry.

Some restrictions were imposed in 2003, but the cycle of debt persists: One study found that 90 percent of the lenders’ business comes from people taking out more than four loans a year.

Fifteen states and the District of Columbia have imposed 36 percent rate caps, which the Center for Responsible Lending has found to be the most effective tool against payday lending. In those states, the payday lenders shut down.

The lenders argue that’s a bad outcome — that they provide a service for people without other options. But that is not true. Nationwide, there are now hundreds of commercial banks and credit unions offering similar small loans at reasonable rates. That’s in addition to such community-based programs as Bank on San Jose, run through the United Way, which also help borrowers build credit and savings.

Congress is so consumed with other aspects of banking reform that it seems unlikely to act on payday lending. But it has already made the best possible argument for a 36 percent rate cap: In 2006, it imposed one for loans to members of the military. The Department of Defense concluded that “Education, counseling … and sound alternatives are necessary but not sufficient to protect service members from predatory lending practices or products that are aggressively marketed.”

The same is true for day care workers, clerks and janitors. If a 36 percent rate cap is right for military families, it’s right for every family. And if Congress won’t pass one, the California Legislature must.

source: Mercury News Editorial

No fax payday loans are unique loan schemes for those who want to avail cash assistance without facing the hassles of loan

application. With this loan, borrower can get the money deposited into their bank account in the same day or the next business day, without performing the hassles of faxing pile of documents. Faxless payday loans are generally short term loans which ensure to assist you with necessary amount to combat with any emergency.
No fax payday loans are basically unsecured loans offered without any security. These loans are risk free loans where the borrowers do not have the risk of losing any of his or her personal property. The loan is approved on the basis of the regular employment. The loan approval is done within a short time and can be extended for the repayment period of 14 to 31 days. The borrower can repay no fax payday loan after you get your next paycheck.

No Fax Payday Loans

The approval for no fax payday loans can be done without any credit checks and so even bad credit holders can also apply for these loans without fears. So, before online shopping, make sure that you have compared the various online lenders. These loans are easily obtainable in an easiest way out without facing any complex loan approval procedures. These loans are available through online process and can be available easier than before. Your desired cash will get deposited into your bank account on the same day of application or the next business day.

No fax payday loans are the easiest loan option. While applying or getting approval, borrowers need not to wait in queue or visit physically to any lender’s shop. Simply fill out the online application form and get the loan deposited into your bank account on the same day or the next business day. So, make a good search over the net and find the most suitable lenders for the better loan deal.

The process of application for the 24 hours payday loans is very simple and understandable. First you should find a company or an internet site which can provide you with fast and reliable service of lending some cash. A good choice will be a long-working company that gives you cheap payday loans. After the choice is done you fill in the application which requires only basic information about you, usually on-line, and wait for the cash or money to be transferred to your bank account.

To make the deal safe the company may request from you a bank check for the advanced date or the amount of a loan plus fee. The date is usually the next day from the date of your salary. Do not hesitate to issue the check as this is also very comfortable for you. In case you’ll not be able to come to give money back in person on the agreed date, the assets for the amount you own will be just taken from your deposit on the basis of the said check.

As understood from the name a 24 hour payday loan is the one received very fast, within a day-and-night after submitting the application. But in most cases you won’t have to wait even that long, and the necessary amount will be given to you earlier, within several hours.

As you can see there is no time-consuming teletracking, information gathering or submitting in the process of same day payday loans application. So when you are in urgent need of money there is a good way out for you – payday loan may help you to stay calm and do not worry.

And even if you’ll no be able or not wish to return he money on the day agreed, you can postpone the payment. For example if you have taken $ 200 for a two-weeks period, in a fortnight you’ll pay back $ 200 plus fee, or just pay the fee leaving $ 200 for yourself for the 14 days more. Just be aware that in a month you’ll have to return the chief amount together with new fee.

A payday loan is a great support when the payment is done in time. So be aware that you return money, do not take more then you need, and worry about nothing else but life without debts!

The positive things of payday loan receipt are very vivid. When the money is of urgent need, it can be hard to wait in line for the credit from the bank. What is more there are several restrictions as for the age, financial state and previous credit history record for those who apply to the bank. The answer from the bank authorities for the credit approval may be long-waited, while the money is needed at the moment. So the payday loans are much faster to apply for and to received.

The application for instantly approved payday loans is very simple, and only basic information is required, such as name, job position, monthly income, bank account number and sometimes address. Only this is needed to issue you an amount requested by you from the company. As you can see there no confirmations or teletrack system applied, so even the person with problematic credit history may apply for the same day payday loan not being afraid of the refusal.

The payday loans are also very convenient because they can be prolonged or postponed. If you cannot pay the amount you’ve lent at once on the agreed date, you can postpone it till the next payday, with some extra fee applied. So even if your salary is late you still will have to face no fines for the delay.

When speaking about disadvantages concerning payday loans one immediately thinks of the percentage rates or the fee amounts. For sure the fees you’ll pay to the company for landing you some money are rather high, more then the bank would normally request. But the possibility to get the amount you urgently need n such a simple way can be very valuable and worth paying.

Another disadvantage of the loans of such type is that you may be caught in the circle of lending and lending money more and more. It is not pleasurable, as you may lose the sense of reality and try to get more money that you actually need or can return. But it is easy to avoid such situation if to control your expenses and to lend only the amount you are sure to give back.

If to follow these simple rules you will never be upset by the loans you get, but only satisfied with the possibility to buy whatever is needed by you at a time convenient. An all this is done with the help of payday loans service.