Scouring the web for a reputable payday loan company can be a stressful and time-consuming process. How do you truly know if a company is a real payday loan provider or just a shady alternative? How can you be sure that you will get the business that is advertised? What does it mean to be a real payday lender?
Individuals ask themselves these questions everyday in the online search for a short term loan. Many companies advertise themselves as payday lenders, however it is very important to understand the differences between a real payday company and those looking to take advantage of unsuspecting consumers.
At LendUp, we pride ourselves on providing real payday loans to customers looking to work with a transparent and reputable company. We are a direct lender, so you can be sure that there is no middleman! LendUp provides funds directly to customers and ensures that there are no hidden fees, no shady practices, and your private financial information is stored securely within our system. We are a real payday loan company!
But you may be asking yourself, what are some of the other type of payday lenders? Below we've provided more information on the various type of lenders to look out for:
Tribal Lender: A number of American Indian tribes have benefited greatly from the revenue created from online lending. As a tribal lender, a partnership is usually formed with a 3rd party financial entity seeking to provide unlawful, unsecure loans to consumers. Since tribes often act as sovereign entities, protected from many state consumer protection laws, the lenders operating on their land are able to provide payday loans that trap customers in a cycle of debt. Consumers are often charged exorbitant interest rates, and incur fees that are hidden in the fine print. These are not real payday lenders!
Offshore Lender: These companies are headquartered and operated away from the jurisdiction of federal governments. They are often exempt from most consumer protection laws and regulations. Operating overseas has allowed them to prey on individuals who often have no idea that they are borrowing from a company without many of the state or federal regulations. Offshore lenders are able to block transparency, skirt around protection laws, and cause consumers to risk their financials with foreign brokers. This is not a real payday lender!
Direct Lender: With this type of lender, there is no middleman so information is never sold to a 3rd party marketer. Direct lending companies typically determine their own loan eligibilities, but are still beholden to financial laws and regulations protecting consumers. As LendUp demonstrates, loan applications are processed immediately, interest rates lower over time, and personal information is kept securely and not shared with third parties. LendUp is the perfect example of a real payday lender!
As you have seen from the examples above, it can be difficult to trust a real payday loan site when there are so many to choose from. It's very important to find a company that keeps out the middleman to insure that your information is kept safe and secure. Real payday lenders follow the laws and regulations created to protect your financial well being.
Payday loans in Australia are part of the small loans market, which was estimated in 2008 to be between $800m and $1bn a year, although it seems likely that the true market was and currently is higher than this.
The growth of this market mirrors the growth in Canada, the United Kingdom, and the United States. Because the market for small loans...
The Center for Responsible Lending (CRL) is a nonprofit organization non-partisan research and policy group based in Durham, North Carolina and with offices in Washington DC and Oakland, Calif. Its purpose is to educate the public about financial products and to push for policies that curb predatory lending. On its website and elsewhere, CRL...