Should Payday Loans be Legal?
Yes, payday loans should be legal, especially in these economic times. More and more people are turning to payday loans for their quick processing turnaround, unlike personal bank loans. Payday loans are a hold over until the next payday. It is easier to qualify for a payday loan than a personal bank loan; the qualification is you have a paycheck coming to you from an employer. Most people who borrow payday loans are low to mid-income employee and may borrow a payday loan for transportation back and forth to work until payday, that is how it first got it name.
Since Payday loans are not legalized the consumer is not protected and a lender of these loans are able to charge large fees to the borrower. I have read of instances when lenders withdraw from the checking accounts of borrowers who had their paychecks direct deposit and they withdrew more than their were owed. If this is not legalize lenders will continue with illegal practices such as loan sharking and predatory lending prey on the poor.
Regardless of whether this is legitimate or not people are going to borrow when they have no other choice, consumer should be protected from predatory lenders or not they will fail prey to thieves and swindlers. I will advise anyone who decides to use Payday loan to check any reference they can to find out who is your lender> Since this is not a legitimate organization it is a bit hard to check with Consumer Agencies, this is a good reason why they need to be legalize for consumer’s protection.
Legalizing these lenders will put consumers under consumer protection law, and prevent predatory lending to people who can lease afford to lose their hard working money to would be lenders. Any one borrowing payday loans should be careful of who they give there information to, never borrow loans from an out of town lender. Some lenders are after personal information to use for other that the purpose of the loan, that is why there is a great need for legalizing these lenders and only lender registered with Consumers Affairs are able to process such loans. With this industry booming this is just another underground operation conducting business as they pleas without any legitimacy.