Fast Payday Loans Get a Boost from 3 Key Pieces of Legislation

[Nov 16, 2009.]

 

After several years of persistent persecution, it looks as though the tide for the fast payday loans industry is taking a turn for the better. Three key pieces of legislation have recently been passed that should pave the way for an increase in payday loan applications--particularly in this challenging economy. Once you understand how these laws affect your borrowing power, you can put them to work for you.

1. Credit Card Accountability, Responsibility and Disclosure Act of 2009 (aka the Credit Card Act)
The Credit Card Act of 2009 restricts a credit card company's ability to increase the interest rate on existing balances to just three specific circumstances. In response, the credit card industry is moving to raise rates on existing accounts--and driving consumers in droves to access payday loans. Some borrowers are even getting a payday loan to pay off the credit card balances that may skyrocket in the very near future.

2. Senate House Bill 1709
SHB 1709 provides fee and installment plan assistance for borrowers at risk of default on small loans, such as payday loans. This protection has been long overdue. SHB 1709 finally gives consumers in the debt cycle a strategic plan to get out. Also, it should keep millions of others from following down this trail. The government is building an electronic enforcement system to ensure that lenders and borrowers follow the same set of rules. It’s noteworthy that this bill sets a cap of 8 loans per borrower in a 12-month period.

3. House Bill 1310
HB 1310 provides restrictions on check cashers' and sellers' communications when collecting delinquent small loans, such as fast payday loans. This means you should no longer be bothered by phone calls at work or at odd hours of the day or night. HB 1310 defines a method of communication between lenders and borrowers that respects both entities and the financial transaction that connects them. This piece of legislation replaces the original Consumer Protection Act and covers lender behavior with respect to impersonation of a government entity.

The bottom line is that the stars are aligning to take advantage of this legislation. If time is a factor for you, Rebuild.org offers a comprehensive search strategy to access fast payday loans. Simply enter some basic information about your financial needs and we hook you up with some of the better rates you can find anywhere.

 

About Author:

Kelly Richardson is a freelance writer, marcomm consultant and digital entrepreneur. He’s written content for Fortune 500s Google, Yahoo!, Microsoft and Wells Fargo. Find out more about him at kellyrichardsoncopywriting.com.