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54. |
Is the approval of the payday
loan being done without the fax? |
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Yes, it is. The important
documents need for the approval like disclosure document, payment
authorization form, the copies of most recent pay stub and bank statement
along with a voided check can be sent via an overnight service as provided
by Airborne Express, FedEX or UPS. |
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57. |
Is increase in current loan possible? |
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If a person is approved for a
loan for particular amount and the person’s current loan is lesser; then
in this case person has an option to renew his loan by increasing the
amount of his/her loan. This option is not valid for the persons who have
already taken loan up to the amount which has been granted for them. |
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59. |
What is payment procedure to renew a loan? |
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The minimum payment to renew a
loan would b $10. This amount would directly be debited from the person’s
account. Now, only the interest is to be paid then on for the loan. |
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60. |
Are there any problems caused by the payday loans? If yes,
then what are they? |
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Yes there are problems
caused by the payday loans. These, problems are as under:
- These loans as claimed by the
industry is not used once but used many times by the customer: these
types of loans are generally being taken by the person who is having
very bad credit history or may be the person is in heavy debts. As these
loans have a very high interest rate, it makes these people in more debt
and forcing them to either renew or take an extension in repaying the
debt. Due to this the interest rate keeps on increasing and the interest
rate also reaches up to the 3-digit figure which is too much. Hence, the
person would be completely bankrupted or would be having a very bad
credit.
- Very high interest rates of these
loans: The Company giving this type of loans keeps this high
interest rates justifying themselves by saying it is necessary due to
high loss ratio and very high risk. But, this is not a very nice reason
as other banks give the loan at a very low interest. Hence these rates
can be decreased considerably, as done by SB 834.
- Ill-practice followed by the money
lenders: Usually money lenders deposit the check before the date it
should be deposited. This causes the check to bounce and due to this,
the money lender charges more fees from the consumers.
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