CONSUMER ADVOCACY GROUPS MOVE TO CONTAIN PAYDAY LENDERS

CONSUMER ADVOCACY GROUPS MOVE TO CONTAIN PAYDAY LENDERS

Consumer Advocacy groups have their guns trained on payday lenders. To most of these groups payday lenders are out to take advantage of poor people, the interests charged, in some cases as high as $ 35 for every $100 borrowed, are meant to keep the borrower in debt since most of them carry a lot of debt so they are unable to clear the payday loan on time resulting in extra charges. The advocacy groups are pushing for laws to control the industry. They want the interest rates to be reduced and controlled as well as allow the borrower to negotiate for a repayment plan if they are unable to pay the loan at no extra charge. Payday lenders are being attacked from all fronts the consumer groups want laws to be tightened to punish lenders who take advantage of customers by not disclosing all information about the loan to the customer. Some payday lenders are happy about the proposed laws, they view them as the way forward for the industry, and they believe that the laws will weed out the bad elements and give the industry the much needed legitimacy and credibility that is currently lacking.