Payday Loans: An Overview
There comes a point in everyone’s life (even celebrities before they were famous) when you feel like you need more money to pay for your expenses at some point than you are earning. Today’s economy and its people are increasingly cash strapped, and seeing an opportunity payday lenders began establishing themselves as small loan companies attracting borrowers with claims of ease-of-access as well as quick delivery. In Australia, as well as other parts of the world that offer these services, the industry is thriving reporting numbers that are astounding considering the amount of risks people open themselves upto. However, these risks are only in place if you are completely unaware about the process. Analysing all sides of the system is beneficial not only in this case, but with anything you do in life.
PAYDAY LOANS IN AUSTRALIAAustralia has a large number of payday lenders clamouring for the most number of customers. In such an ocean of choice, it can be easy to be misled and confused and for these very reasons you should have either a discussion with someone who has been through the process, an in-depth conversation with the lender if necessary or plenty of research in the subject. To put things into perspective, in just June 2014 alone, the online loans Australia industry was valued at a whopping $400 million.
THE STORYLINEThe concept of payday loan facilities is a fairly new idea, and was not as big as it is today when it began. As such, there were not any regulatory bodies that were catered to monitoring the activities of such companies. In the recent past however, given how fast the industry has ballooned and the number of scams unsuspecting borrowers have been subject to, these governing bodies have established themselves in a bid to protect the other side from exploitation. What is known as the UCCC (Uniform Consumer Credit Code) now covers small loan lending, although some scam companies still find loopholes in order to avoid penalization.
THE FUTURE OF THE INDUSTRYGiven how fast the industry of online loans Australia, U.S., Canada and U.K have risen, it is unlikely the practice will die out anytime soon. However, increasing aggressive behavior by scam companies have seen regulatory bodies such as the Australian Investment and Securities Commission cracking down on the industry as a whole, issuing notice earlier this year for non-compliance with consumer protection laws. One such rift was the discovery of inadequate research by the company into the suitability of the borrower in order to qualify for the loan. As a result it was found, many of these borrowers had in fact multiple small lends under their belt.
AN EASY OPTIONAlthough the small loan facilities industry comes with a lot of minute details that require maximum attention, if you actually choose a company that is reputed within the industry, you have a lot of the work cut out for you. You as the borrower will also have some form of security as a company with a good reputation is bound to be noted by governing authorities. Always ensure you never borrow more than you need as you will have to pay it all back including interest. The purpose of the loan is to get you through this little hump and get you back on your feet, not to make the situation worse. Plenty of research into the matter should do the trick!