Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Federal Investigations into Payday Loans

By Jinny Jones Subscribe to RSS | June 8th 2012 | Views:

Payday loan stores have been a feature on the urban landscape for a number of years now. By offering patrons a short-term loan that may otherwise have been rejected by a bank or will have taken too long to get by other means, this seems to be a fantastic resource for people in need. However there are many pitfalls and dangers associated with these cash advances such as excessively high interest rates and operational fees.

For these reasons advocates have stirred the U.S. government to begin an investigation into payday loans. Leading this investigation is the Federal Deposit Insurance Corporation, or FDIC directed by Mark Gruenberg. The focus of this inquiry will be into banks such as Wells Fargo and US Bancorp that provide payday loan services, and recommend steps to be taken by the FDIC in regards to these banks. This, says the consumer advocacy groups, may lead to greater regulation of such loans.

Meanwhile the Consumer Financial Protection Bureau has also zeroed in on payday loans, looking at the relationship between Native American businesses offering online payday loan services. The Consumer Bureau director Richard Cordray says that these types of online predatory lending have been a frequent source of frustration for many states. Native Americans say Congress are especially vulnerable to the abuses of these types of loans given the lack of banks and other more legitimate lending institutions.

In British Columbia Canada the Consumer Protection board has issued a refund to a number of people who claimed they were slapped with unfair payday loan charges. However only a fraction of the people who have filed complaints with Consumer Protection have filled out the electronic registration form to receive the refund. Manjit Bains, the vice-president of corporate relations with Consumer Protection B.C. believes this is due to the fact that most people are just plain unaware that the refund has been issued. Of the 400 initial complaints only 60 people have come forward to claim their money.

Payday loans while seeming to offer a quick and easy solution to our money problems are actually quite dangerous. Given this threat to consumers several agencies in the United States and Canada have focused their attention on these lenders with the aim of weeding out dishonest practices and introducing greater regulation.

Jinny Jones - About Author:
Jinny is a practiced financial writer with experience writing on topics such as online loans and small finance products. She has a number of published articles focusing on instant loans.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:

Related Loans Articles Subscribe to RSS

Quick cash loans no credit check- Perfect credit solution for bad credit people
Published by Aldenn James on July 4th 2012 | Loans
If you are borrowing quick money via quick cash loans no credit check, you can resolve unpredicted f...
Fund your business with unsecured quick loans
Published by on February 10th 2012 | Loans
In business you always have 50 -50 possibility of success and failures. As an investor, it is to be ...
Quick loans same day- Here is Quick Loans Same Day for You
Published by Heizel Kathryn on March 9th 2012 | Loans
Apply with us for quick loans same day to get rid of your financial worries. We give you the freedom...
Payday check loans- Fast direct cash in your hands!
Published by Georgia Bart on April 9th 2012 | Loans
By getting instant cash via payday check loans, you will surely overcome immediate financial require...
90 day loans- Utilize money up to 3 months without any hassle
Published by Zerif Berson on December 14th 2011 | Loans
If you prefer to obtain long-term loan then 90 day loans are great monetary support for you!...
Instant loans with bad credit: Cash facility with poor creditors
Published by Calvien Peter on December 5th 2011 | Finance
These finances are the best way to get the fast cash. Applicant can avail fast cash without pledging...
Instant loans for bad credit - No tension for quick money now!
Published by Thoms Stuart on May 12th 2012 | Loans
If you have obtained quick funds up to $1500 through instant loans for bad credit, it is quite flexi...
No credit check loans- Meet urgent cash needs with no credit check loans
Published by Elrod Mark on December 17th 2011 | Loans
So, without wasting your time, apply for no credit check loans to meet your urgent cash need. We off...
Small loans- Hassle free loan to meet urgent fiscal needs
Published by Belvin Kohli on June 5th 2012 | Loans
By availing quick cash via small loans, you have the right option to meet any unexpected fiscal need...
3 month payday loans: Get Hold of Monetary Help till 3 Months
Published by Jaken Smeth on June 7th 2012 | Loans
3 month payday loans not only offer you money but let you enjoy flexible repayment process that brin...
No credit check loans- All sorts of credits are welcomed
Published by Milos Pesic on January 10th 2012 | Loans
No credit check loans are provided to borrowers, without going through their credit record. Based on...
Monthly payday loans- Useful cash support for American
Published by Rocky Ales on April 11th 2012 | Loans
If you have obtained quick cash via monthly payday loans, you are free to utilize the money as per y...
Payday loans no credit check- Ultimate way to meet cash hurdles
Published by Malen Cheks on July 20th 2012 | Loans
By getting quick funds via payday loans no credit check, you can fulfill unexpected fiscal worries w...
Need payday loans now – take cash in your hand without any delay
Published by Nathan on March 30th 2012 | Loans
Need payday loans now currently assist you to fulfill your emergencies that pop up all of a sudden? ...
Fast loans today- Surely assists you at peak hours
Published by Alex Abigil on December 13th 2011 | Loans
If you wish to grab fast cash help then you can apply for fast loans today available online....
Money loans: Know Various Money Loans Options
Published by Karen Flec on May 17th 2012 | Loans
Money loans would bring money to you in the manner you want and so, you don’t need to hesitate if ...
Installment loans online – simple and faster way to solve your funds problem
Published by Johan Watson on March 15th 2012 | Loans
Online installment loans can sport you after you are having some money crisis that's affecting your ...
Installments loans UK – comfortable option for monetary emergencies
Published by Andrewanthony on May 30th 2012 | Loans
Installments loans UK offers the chance to borrowers who are craving for burden free finance. These ...
Quick loans same day- Forget any cash hurdle now
Published by Aldis Roy on May 19th 2012 | Loans
If you want to get quick money then quick loans same day is commendable loan option for you....
Immediate loans for bad credit: Get Money easily in Hardships
Published by Zerif Berson on July 7th 2012 | Loans
Don’t worry for urgent issues! Immediate loans for bad credit would serve you money for any necess...