Spotloan complaints

Spotloan complaints

Due to recent financial reform laws, payday lending laws have undergone a bit of a facelift lately.  While lending businesses are mandated on a state level, the growing movement to crack down on predatory lending practices has affected the industry as a whole.  A constant tug of war keeps restrictions tight:  lenders appeal to lawmakers to allow their services to continue, while watchdog organizations argue the high cost of the loans is unfair and unscrupulous Spotloan complaints.

Payday loans are currently legal, although regulated in a total of thirty-five states.  The remaining fifteen states do not allow payday loans under their current laws and statutes.  The fifteen states that have banned the practice include:  Arizona, Arkansas, Connecticut, Georgia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Vermont, and West Virginia.  The states that allow this form of lending do impose certain usury limits, as well as place caps on annual percentage rates (APR) Spotloan complaints.

While many states do have laws in place to protect consumers' interests when obtaining a payday loan, some payday lenders have found ways to skirt the usury laws by teaming up with "nationally chartered" banks that are based in a state that does not have a usury ceilings (Delaware and South Dakota are two such states).  This is a similar principle that many credit card issuers use in order to justify charging high fees and interest rates Spotloan complaints.