Payday Loans Consumer Reports

There’s only one thing about payday loans Consumer Reports should be saying, and that’s to avoid them altogether. If they are truly an advocate for the consumer, they would have no business recommending any of the payday loans companies. In actuality, they should vilify places online that offer thousands of dollars in exchange for five times more money back. And that’s exactly what they do. Far from offering reviews on payday loans Consumer Reports has an article that bashes the industry itself.

The company that publishes the magazine Consumer Reports is Consumers Union, and they even have a guide on why payday advances are bad for the consumer. They list a minimum of four problems caused by payday loans lenders. The first thing about payday loans Consumer Reports feels is a problem is that it creates a trap. This is the number one problem they listed and they got it right on the money. These loans wouldn’t be so bad, and their APR’s would be easier to swallow, if they allowed the consumer to pay them off over time instead of all at once after just two weeks in many cases.

The second thing about payday loans Consumer Reports pointed out is the exorbitant fees they impose. They challenge the claim made by the payday advance industry that they issue high risk loans and cite charge-off rates as low as 3% in many cases. Most people realize that payday loans are their last defense to bankruptcy and total financial meltdown, and respect them accordingly.

The third aspect of payday loans Consumer Reports brings to light is that in some states these loans are totally unregulated. Regulations vary from state to state so be sure to find your state on the right side of this site and you’ll get all of the current and local information you need. There are many states that don’t have any specific legislation in place to monitor the activities of these companies. While others have outlawed them, and still others heavily monitor their practices.

The last point on payday loans Consumer Reports makes is that they deceive consumers by their very nature. They put consumers in a position to get harassed and threatened because the payday loan company holds the check.

The same report offers 6 alternatives to getting a payday advance. These range from getting overdraft protection to getting advances directly from you employer. Many people will have already thought of these options before turning to payday loans Consumer Reports doesn’t really offer much in the way of new ideas. A majority of their alternatives involve having good credit, and many of the folks who turn to payday loans don’t have that.

Payday Loans Consumer Reports: Closing Thoughts

payday loans consumer reports

Payday Loans Consumer Reports: Don't Be Lured By Ads Like This!

While we applaud the stance they have taken on payday loans Consumer reports falls short in offering viable solutions to the problem. While they are promoting a bill that will help lessen the horrible condition that the payday loan industry is in, it does little to change the current state of affairs. People need real help, right now as the economy keeps declining, and more jobs are lost. They can’t pin their hopes to a bill that hasn’t been presented yet.

If you’d like to stay abreast of all of the latest payday loans Consumer Reports there are several ways to go about it. You can follow our Twitter tweets, you can like our Facebook page, you can add our RSS feed to your favorite reader, or you can join our mailing list from our contact page.

This page functions best as a social community. If you’ve had a good or a bad experience with a specific payday loans Consumer Reports review, please share it with the rest of us so we can all benefit from the information. Also, if you have any questions about the information you’ve just read on payday loans Consumer Reports, you can ask them here, and either one of our staff or another visitor will answer it the same day. You can also feel free to sound off on the cash advance industry itself, and say whether you feel payday loans are inherently good or evil. This will help provide a well-balanced round table style talk on payday loans Consumer Reports.

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