There are those in politics that would have you believe that payday loan lenders are out to hurt consumers. They claim that payday loan lenders overcharge their consumers, therefore targeting the poor and creating very unfair practices that result in a spiraling cycle of loans.

The truth of this matter is that when you look at the facts, payday fast cash loans provide a less expensive alternative to bank overdraft fees. Here are some facts about payday loan lenders.

FACT 1: Payday loan customers are Middle Class, not the poor. The average payday loan customer makes over $41,000 annually, has some college education, and is not a minority.

Source: Georgetown University, Io Data, & the Cyprus Research Group Independent Study.

FACT 2: Payday loan customers do have other credit available. 85% of payday loan customers have access to other forms of credit

Source: Georgetown University, Io Data, & the Cyprus Research Group Independent Study.

FACT 3: Payday loans save you money over bank overdraft fees. The average payday loan fee is 2.3 times less expensive than bank and credit union overdraft charges with the average banks and credit unions charging overdraft fees ranging from $25-$35.

In fact according to the Center for Responsible Lending in a 2005 Study, every year consumers are charged over 17.5 billion in fees for overdraft loans.

FACT 4: Payday loan customers value the service. 77% of customers who use payday loans are satisfied with their experience

Source: 2005 study by the Cyprus Research Group.

FACT 5: Payday loan customers understand the loan terms. 90% of respondents in a recent survey of 2000 randomly selected say payday loan customers understand the costs and terms of the loan.

When used responsibly payday loans are a safe and less expensive alternative to abusive overdraft fees charged by banks. The responsibility truly lies with the borrower in regards to delinquency of a loan.

Just because the payday lending industry gives loans with little screening process, doesn't mean that they are out to deliberately take advantage of people.

In fact, one would think that giving people the respect to make their own financial choices, and not dig into the personal details of their applicants, would mean that the payday industry is unbiased.

There are people that take payday loans without thinking about the consequences and find themselves in over their heads. But there are many people that are responsible with their loans and are able to pay them back when agreed to.

These loans are the very best option for people who need money fast, and have a short term plan to pay it back. The payday loan industry actually prefers responsible lending because they get their money back!

Yes, they make money on all the fees when a person is delinquent on their loan. But if that person doesn't have the money to pay it back then the lender pays court fees to take legal action and he doesn't see a dime for a long time.

So while there are those that want to make payday lenders the "bad guys", the real accountability boils down to the individual who decides to take a loan in the first place.

Jack R. Landry has a PHD in financial services and has written hundreds of articles relating to consumer services and payday loans. He has been a consumer advocate for nearly 25 years.

Contact Info:
Jack R. Landry
JackRLandry@gmail.com
http://www.CheckCity.com