Payday Advance Industry Facts
As a payday cash advance company, we provide quick access to the money that working Americans need to meet their financial responsibilities. Those who are seeking a responsible way to manage their cash flow will find payday advances to be a good choice, particularly when compared to the cost of missing a payment or writing a check that bounces. Our products have helped millions of people, like you, avoid late fees and interest on their credit cards, fees for non-sufficient funds, and other penalties for missing payments.
When unplanned financial difficulties come along, consumers can use payday advances responsibly to help them through these times. Whether it be a family member who has a medical emergency, a car that needs an unexpected repair, or a major appliance that decides to stop working at the worse time possible, consumers can use payday loans to give them the ability to pay for these expenses and pay the balance in a timely manner. Payday advances must be paid back within a predetermined time period, such as two weeks. However, these advances do not compound interest in the way that other financial products often do. This means that a payday loan can be an affordable solution when people have short-term needs.
Most people who use payday advances are responsible in the way they use them by paying them off on time. Critics of the payday advance industry are surprised when they learn that our customers have active bank accounts and steady paychecks. Our customers are also extremely happy with the products they receive, with few filing any complaints.
The payday advance industry is welcome to regulations that protect our customers, while preserving the opportunity to access short-term loans for the thousands of customers who need them each month. Our trade association, the Community Financial Services Association of America (CFSA), supports legislation that protects customers and encourages companies like ours to use responsible business practices. Thirty-seven states and the District of Columbia currently have regulation of the cash advance industry.
We believe that consumers need to use careful thought when they take out a loan or use their credit cards. However, there are thousands of hardworking Americans who are fundamental to our society, such as teachers, bus drivers, and police officers, who find that they are sometimes struggling to pay their monthly obligations, and they have little money to fall back on. As demand grows for our products, we realize that our customers are facing increasing financial pressures every day. A responsible payday advance company will offer these hardworking people the tools they need to manage their bills and keep their credit scores clean, while having the ability to cover the gaps with privacy and self-respect.
The way for a consumer to secure a payday advance is to visit a center with an ID, proof of income, and a bank statement. The application form is completed, and the customer will sign the payday advance agreement. Then, the customer will write a personal check for the advance plus the advance fee. The fees is typically $10-30 for a $100 loan. The center will then issue a check for the advance amount. The customer will return to the center on the due date, which is usually payday, and pay the loan back. The check is then returned to the customer.