An Overview Of The Online Payday Loan Industry

An Overview Of the​ Online Payday Loan Industry
The advent of​ the​ new electronic communication technologies that have emerged over the​ past decade has had a​ profound impact not only on​ our day-to-day lives,​ but on​ our economic lives as​ well .​
One of​ the​ best and most convenient services enabled by the​ new technology today is​ payday loans,​ also called online cash advances .​
With the​ passage of​ each day,​ more and more online payday loan agencies are found on​ the​ net which advertise offers on​ websites that consumers frequently visit .​
These ads attract the​ notice of​ millions of​ consumers daily who are in​ the​ market for a​ short-term personal loan of​ a​ few hundred dollars.
People desiring to​ become borrowers fill out application forms online that take relevant information regarding the​ borrower .​
Lenders require such information as​ the​ borrower’s name,​ street address,​ email address,​ telephone numbers,​ driver’s license state and number,​ employer name and address,​ number of​ years/months with that employer,​ bank name,​ and the​ bank’s ID number within the​ banking system,​ called a​ routing number .​
In addition,​ borrowers have to​ provide their bank account number as​ well so that the​ lender can deposit the​ loan proceeds to​ it​ after the​ loan is​ approved.
There are things that borrowers should look for when searching online for a​ reputable payday loan provider .​
The primary concern should be to​ ensure that all of​ their information will remain safe,​ secure,​ and confidential and that the​ provider complies with all associated laws and regulations .​
For example,​ the​ annual interest rate needs to​ be disclosed openly on​ the​ website and any printed material as​ should all one-time and recurring fees that may apply .​
The borrower has the​ right to​ ask for a​ detailed written statement regarding these fees and rates prior to​ applying for a​ loan.
Though it​ is​ a​ fast,​ direct way to​ get needed funds,​ consumers are warned not to​ use online payday loans habitually .​
a​ recent survey of​ 100 payday loan websites conducted by the​ Consumer Federation of​ America (CFA),​ noticed that small loans derived from online access bye consumers were occasionally prone to​ abuse by consumers who used them to​ borrow more money than they should .​
This is​ a​ danger independent of​ the​ adequacy of​ the​ security and confidentiality measures taken by the​ website operators .​
Transmitting personal financial information through the​ Internet between online payday loan agencies and consumers actually entails less risk than cash,​ credit card,​ and check transactions on​ average .​
After all,​ thousands of​ huge bank-to-bank transactions,​ some exceeding one billion dollars,​ are online conducted each business day.
The Consumer Federation of​ America advises borrowers to​ avoid haste and to​ be cautious when selecting an​ online payday loan website .​
And the​ costs of​ borrowing may change from year to​ year,​ so repeat borrowers should always check the​ most recently posted rates and fees that will apply.
Online payday loans are marketed by the​ lenders and their marketing agents by means of​ personal and business referrals,​ e-mails,​ online searches,​ paid advertisements,​ and affiliate programs .​
a​ person who wishes to​ borrow money may either fill out the​ online application form or​ print and then fax the​ completed application to​ the​ online payday loan agencies,​ providing the​ information required for loan approval .​
Transacting personal business of​ any kind through the​ Internet should only be done when you,​ the​ consumer,​ are sure you​ are dealing with a​ legitimate business entity through a​ secure website process.

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