Payday lenders have come under fire from all corners, many have called them predators out to exploit the low income members of society and others have pushed for laws to regulate them or put an end to their business all together. The industry see themselves differently, they believe they have a part to play in society; they believe that the loans they offer are the only way low income families can solve small financial difficulties.

They contend that the high interest rates are necessary to cover them against the high risks they bear when they lend the money without any credit check or collateral. Lenders argue that the loans are not targeted at the low-income earners because there is no credit check while they are open to all they are not open to minors or to people with no income. Paydays loans are only to be used in emergencies and should be repaid in full on the next payday, however if the borrower is unable to do so then they can pay the outstanding interest and rollover the loan till the next paycheck. If the borrower is unable to pay the loan they can request for a payment plan that is workable for them.

Fax-less payday loans are short-term loans, which do not require any collateral and are repaid by your next payday. The loans are quickly processed and no credit check is required. The borrower can authorize the lender to deduct the outstanding amount directly from their checking account when the loans due date.

Payday loans are a lot easier to secure as compared to traditional bank loans, the amount of paper work is negligible and there is no need to provide ones financial history. A borrower must be 18 years and over to obtain a loan as well as be in employment and must earn a minimum salary are required by the lenders terms and must maintain a checking account where the amount borrowed will be deposited. A borrower can apply for a loan by going directly to the lenders business premises or from the comfort of their own homes by visiting the lenders website.

The Washington Department of Financial Institutions dfi, and the Attorney Generals office have filled charges against Fast Cash Loans, one of the largest Payday lenders in the state. The lender is charged with illegal collection procedures, overcharging and illegal lending practices. Following a joint investigation the AG’s offices seeks to have the companies lending license revoked, order restitution to borrowers, impose fines and the company president removed from office as well several of the staff involved in debt collection.

The investigation was launched following complaints from Fast Cash customers that the company was engaging in illegal practices. Majority of the complainants alleged the company’s collection staff approached them claiming to be fraud investigators and threatened the customers with criminal charges if they failed to repay their loans; such actions are contrary to the Washington state payday lending legislation. In addition to illegal collection procedures the investigation unearthed loan fillings that showed that borrowers were levied unnecessary fees and the loan disclosure statements did not correctly indicate the annual interest rate. The company also failed to issue repayment plans to their customers, which was within the customer’s legal rights.

Anyone who has taken out payday loan will tell you that they went to the lenders because they had no other alternative available to them. The lenders are aware of this and have positioned themselves at very convenient locations such as convenience stores and other such establishments. The lenders will inform their customers that a loan of $100 attracts interest of $30 after two weeks but what they

don’t tell you is that the same loan will also have other charges if you fail to pay it with in the agreed period. The charges and interest can over period of one-year balloon to over 390% of the amount borrowed. Many borrowers find themselves in a debt cycle as the struggle to pay off their loans. Some have resorted to borrowing from other lenders to pay of another. In the long run they end up with debts and no savings.

A payday lender in Conway Arkansas was fined $217,000 by the state payday loan regulator. The lender was fined and asked to refund his customers after he was found to be operating a payday store without a license.

The Arkansas arkansas, state Board of collection members voted in favor of the fine, of the $217,000, $173,050 is to be paid to the state as fines and $44,000 will be refunded to customers. The action comes in the wake of a $1.4 million fine imposed on another businessman who operated 14 stores without a license. Arkansas permits payday loans and currently has over 275 licensed stores. A payday license costs $1,500.