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Online Payday Loan Cash Advance Articles
Date: 9/2/2008
According to Bob Whitelaw, the former President of the Canadian Payday Loan Association, American online cash advance loan providers have been interested in setting up fast cash loan and payday loan locations across Canada for many years, but have been wary because of Canada’s 60% usury interest rate.
However, since that rate has been amended, whereby provinces are now able to regulate their respective pay day loan providers, Whitelaw predicts that within the next few months, Canadians will witness American brand fast cash loan and online cash advance loan locations opening up across Canada.
No online cash advance lender is twisting the arm of borrowers to coerce an individual to obtain an online cash advance. On the contrary, individuals turn to receiving a fast cash loan via online cash advance or pay day loan services because they have been turned away from banks because they have bad credit, or they need the money fast and recognize that pay day loans are the best way to accomplish this. Whatever the reason is, pay day loans are not exploitative and provide a valuable service to society that if banned, will tear a hole in the fabric of society.
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American Payday Loan Companies Eyeing Canada
American payday loan and payday advance loan providers are setting their aim on the Canadian short term cash advance market. This is due to the fact that over the past month, Canadian regulatory bodies have made clear legislation regarding payday loans and fast cash loans, which has prompted American pay day loan providers to show interested in the Canadian market.Canadian Payday Loans
American payday advance loan and payday loan companies are keen on expanding into the Canadian payday loan market because the legislation that the provinces are enacting are actually less rigid then that of some states. For instance, earlier in April, Manitoba was the first province that enacted pay day loan and cash advance legislation, which limited the amount of interest pay day loan companies were able to charge.What are Payday Advance Loans, Often Called Cash Advance Loans
Payday loans are unsecured cash loans that are meant to provide a borrower with a small cash advance to help manage their expenses. Payday advance loans often range from $100- $1,500 and are due when the borrower receives their next paycheque. Furthermore, if the borrower wants to prolong the amount of time that they maintain the initial payday loan amount, they can do so by paying a finance fee. Once the fee is paid, a new due date for the borrowers fast cash loan will be provided.According to Bob Whitelaw, the former President of the Canadian Payday Loan Association, American online cash advance loan providers have been interested in setting up fast cash loan and payday loan locations across Canada for many years, but have been wary because of Canada’s 60% usury interest rate.
However, since that rate has been amended, whereby provinces are now able to regulate their respective pay day loan providers, Whitelaw predicts that within the next few months, Canadians will witness American brand fast cash loan and online cash advance loan locations opening up across Canada.
Cash Advances in our Neighbour to the South
Interestingly, Canada has been moving in the opposite of its neighbour to the south in regards to pay day loan regulations. Many American states have capped the amount of interest that payday advance loan and online cash advance providers are able to charge borrowers. In 2006, the federal government passed legislation that capped the annualized interest charged to fast cash loan borrowers who belong to the military or a military household. Since then, other states have been considering implementing similar pay day loan regulations and cost of credit caps. A state has not given legal legitimacy to a pay day loan provider since 2005 and as a result, the practice has either been to implement low caps or outright banning payday advance loans such as in Georgia.Online Cash Advance Services are Fast and Hassle Free
At first glance it may not seem that the presence of pay day loans or online cash advance services are integral to the functioning of American society, but through careful analysis of states in which pay day loans are legal, and in those where they are banned; a picture is painted of how important payday advance loans and online cash advance services are to society. For instance, in a state such as Georgia where pay day loans and payday advance loans have been banned, there has been a significant increase in the prevalence of bounced cheques, property foreclosures and bankruptcies. As a result, opponents want to ban payday loans and cash advances because they feel that payday loans incur high interest. However, if payday loans or online cash advances are banned, bounced cheques will increase and the fees that are incurred by the individual because of the bounced cheque are more costly than if they were to obtain a payday cash advance loan! Therefore, with respect to the increase in bounced cheque frequency, fast cash loans should not be banned. Moreover, these fast cash loans enable a borrower to receive cash fast if they are between their paychecks. The money could be used to pay off bills or rent, which would decrease the increase in property foreclosures which has been witnessed in states where payday loans are banned.No online cash advance lender is twisting the arm of borrowers to coerce an individual to obtain an online cash advance. On the contrary, individuals turn to receiving a fast cash loan via online cash advance or pay day loan services because they have been turned away from banks because they have bad credit, or they need the money fast and recognize that pay day loans are the best way to accomplish this. Whatever the reason is, pay day loans are not exploitative and provide a valuable service to society that if banned, will tear a hole in the fabric of society.
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