By: Gaurav Bhola, MSM, Managing Editor
The payday loan lenders seem to be breathing a sigh of relief about the proposed Mortgage Reform and Anti-Predatory Lending Act of 2007, congressional legislation. If this legislation comes to pass and is implemented into law, it will supersede any state laws governing not only mortgages but payday loans as well. However, North Carolina Attorney general Roy Cooper is not a fan of this legislation. He believes North Carolina payday loans industry laws are stronger than the proposed federal legislation.
The state of North Carolina has some of the strongest legislation governing the payday industry. Cooper believes the federal legislation will dilute existing state laws. The Mortgage Act is the first legislation of its kind to govern payday cash advances, mortgages, and other personal loans at a national level.
As payday loans have grown in popularity, so has the controversy surrounding them. North Carolina has banned within its borders cash payday lenders from doing business. The payday lenders’ national Community Financial Services Association of America (CFSA) has long held the belief that North Carolina’s laws are unjustifiably strict and without merit.
The association has long argued that inhibiting consumers from accessing the short-term personal loans has led to consumers pursuing more expensive credit options, such as high interest cash advances from credit cards or enduring bank overdraft fees.
CFSA also believes that in states with prohibitive laws, there have been higher cases of bankruptcies due to consumers being unable to access cash advance payday loans. But Cooper isn’t buying it. He sees no alternatives to the complete ban of payday loans within the state.
However, consumers do have a choice in the form of online payday advances or faxless payday loans. Instead of waiting in lines at payday stores, going online is the best alternative. Trusted sites such as PaydayCashAdvanceLoans.com provide access to quick cash without faxing any documents. Generally, borrowers can get the emergency personal loans within 24 hours. In many instances, consumers have the cash funds transferred within few minutes of their loan application being approved.
Ultimately, consumers do have a viable credible online resource to the retail payday location. The payday loan industry has been thriving for over a decade providing billions in loans to consumers. It is an industry that has strong supporters and strong detractors. It is just a matter of time until we find out the outcome.
