Payday Loan Industry Facing Criticisms: Right or Wrong

 

Payday Loan Industry Facing Criticisms
Payday Loan Industry Facing Criticisms

Payday loan industry is facing criticisms at large because of the fact that they are costly loans which are provided at higher interest rates which takes the borrower deep in debts so they should be condemned. But the case was defended by the money lenders through their arguments justifying their awful and unjust works. Usually people who were saved by them at the time of financial crisis disregard them.

Lenders argued to justify their overcharging of the interest rates by saying that it is risky to provide short term loans as they are given at short notice and most of the borrowers fail to repay them in time. Moreover no collateral security is provided by the borrower against the loan and fir that reason too the rate pf interest is charged higher to ensure that borrower is not making undue advantage of payday loan for bad credit. In fact, higher interest rates are charged to secure the lenders from defaulters against the money they refused to repay.

The lenders further argued that they, like other businesses, have to be fair with their colleagues in the business engaged with financing other industries. For that reason they have the right to make profits equivalent to others to fulfill their targets and requirements through the income from payday loans. This encourages them to expand their business. The higher fee for the payday loans has been justified with the arguments that the interest paid on payday loans are much less than the penalties paid against bounced checks as well as the increasing costs of processing the loans. They also argue on the base of improving the economy of not only their nearby people but country’s economy too.

Thus, for these reasons, the lenders of payday loans are supposed to be blamed unnecessarily as they not only put you out of financial crisis but also save you from being blamed for poor credit rating.

So if you have bad credit rating you can apply for bad credit payday loans at http://bad-credit-history-loans.org.uk.

Payday Loan Industry Facing Criticisms: Right or Wrong