08 Sep, 2017

Payday Loan Franchise Opportunities

Payday loan franchise opportunities If there is anything more disgusting than payday loans I would like to hear about it. payday loan franchise opportunities companies prey on the weak and those who are the poorest of all. The amount of interest that is charged on these "advances" can range as high as 391% APR. How can they legally lend money at such exorbitant interest rates? Easy, a quirk in the law makes it possible. Payday loans charge a "fee" which makes them exempt from the standard usury laws that cap interest rates. The fee charged by the payday loan company is not interest so is exempt from usury law rules and regulations. Those who use this service are the ones who just need a little money to "tide" them over until payday loan franchise opportunities and the vultures in this industry are more than happy to comply. The method of operation is the borrower writes a personal check payable to the lender for the amount needed plus a fee. The payday loan company gives the borrower the amount of the check minus the fee in cash. They also offer the rollover extension option that allows the borrower to extend or "roll-over" the loan for another two week period providing an additional fee is paid. The borrower gets in deeper and deeper. Numerous states have investigated how these companies are able to operate within the truth in lending laws and how they are able to charge these outrageous fees. The fact that these loans are based on 14 days has eliminated them from state review and regulation, very short term loans are exempt from the rules other than the federal "truth in lending" disclosure form. Congressional hearings on this topic have been few and far between because those being abused are not the segment of our populace that donates to campaigns and hires lobbyists. On the other side of the coin "payday" lenders are organized and retain lobbyists to assist in legislative issues regarding their industry. The legislation that really protects this industry is the "bad check" law. It is illegal to write a bad check in every state so the check written to the payday loan franchise opportunities company is really hostage to the writer of the check. If the check is never made good then the writer has exposure under felony penalties. The check writer must make the check good or face criminal charges. The website also goes on to explain that the annual return for the purchase of their franchise is a return of 805%. That beats the devil out of Starbucks or McDonalds.