Institutions in UK, USA Fighting Fraudulent Payday Loans

Loan Sharking: Origins, Stigmas and the Present Day

Loan sharking was the term given to the act of borrowing small quantities of money in exchange for exorbitant interest rates. Loan sharks started to pop out as soon as people noticed that it was possible to do this and get rich doing it, but they became famous in Europe during the medieval ages. They were considered the poison of society and people fought against it.

Nowadays, many payday loan agencies are compared to loan sharks – but some of them don’t even deserve it. People mix up unethical payday lenders with legit ones and they call loan sharks to respectable payday loan agencies, while some scammers get away with people’s money.

Luckily for us, in the present day, it is easy to avoid payday loan scams or current day loan sharks, you simply have to research the provider well, read the fine print thoroughly and find out if that payday lender is regulated or not.

Throughout this report we will provide you with some ways to not only discover if you’re being scammed, but ways to fight payday lenders that abuse you, how to repay hard loans and how to manage your finances in order to avoid being trap on the hole of bankruptcy.

 

Increasingly Controversy:

With the growing economical and financial crisis, controversy about payday lenders has been increasing. People are now concerned that the stigma about loan sharks from the renaissance and medieval ages might return, which might lead payday lenders to be pursued and forced to close.

Fortunately for the honest and hardworking members of the payday loaning industry, governments throughout the world, mainly in the UK, are starting to build up strict rules and regulations that will shut down the scam and dishonest payday lenders, leaving only the ethical and honest payday loan agencies open for business.

Regulation agencies and institutions that are sworn to protect the consumers and fight the scams in the payday loan industry are sprouting out and starting to help people in financial distress to get rid of the chains imposed by the loans they took – being aware of the conditions that were required to make them or not.

 

 

Unethical Lending:

Payday lenders are obliged to only lend if the client or lead passes out their filters, and this guarantees that these lenders only borrow money to people able to pay it back or to people that prove they are good candidates for such loans. However, many payday lenders incur in unethical lending – they pass the screening phase and demand next to no guarantees.

So, this means payday lenders are sometimes lend money to people that they know can’t pay back in time, ruining those people’s lives sometimes – and that’s why all legal payday lenders must pass the responsibility act.

Sometimes, the only thing you need to do in order to cancel a loan or to freeze your interest rates is to appeal to the funder’s responsibility, and that payday lender will have to present new conditions that will guarantee that the problem will be solved both ways, being it by enlarging the deadline or by freezing the interest rates completely.

 

Institutions that can help you paying back:

One institution you can turn to if you think you are being treated unjustly or unethically, or if you’re sunken in debts because of some hidden fees on payday loans you have taken, is the State Department of Financial Institutions – which regulates the licenses for financial institutions in the U.S.A.

You know, for payday lenders to operate they must have a valid license to provide payday loans in that certain state of the United States. This license guarantees that the institution respects a rigid set of rules that allows consumers to rest easy knowing that the payday lender is a legit provider.

Most of the times, scammy institutions aren’t licensed – this is great news for payday loan scam victims.

You see, if your payday lender isn’t licensed to provide payday loans you don’t have to payback your money at all, not the amount you had borrowed and not the interests, because the payday loan provider is dealing in an illegal way – so get informed if you’re struggling to pay back your loan.

The Consumer Federation of America is another option for American payday loans, as they have recently started helping thousands of people struggling financial with high interest rates left to pay. The consumer federation might intervene in your name if you’re proven to be struggling financially and next to bankruptcy or if the payday lender is detected doing unethical business, not respecting responsibility acts or conducting malpractice in general.

The Consumer Finance Association is your go to option if you are living in the UK and not the states. The principles are the same but the location changes. For other countries, simply search for the organization that is doing the same as the American and British CFAs, or find a good debt attorney to help you out – most of the times it pays the investment.

 

Institutions that can help you fight scams:

The institutions we have discussed above can help you when it comes to malpractice in the payday loan industry, but what are some of the institutions that devote themselves to fight payday loan sharks throughout the world?

The Federal Trade Commission is the American institution that has one of his core activities related to fighting payday lenders that abuse their customers while there are several international institutions that fight all payday lenders regardless of the way they do business.

So, bottom line, there is no way you have to fall victim to unethical payday lenders, and throughout this report we discussed several institutions you can turn to. Get bailed out of payday loan scams and regain the financial independence in your life – you just have to do proper research and bother the right authorities, and we just helped you do that.

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