State by state this country is slowly getting it right. States are learning how to fight payday loans with new laws, and it is about time.
Alabama is the latest state to call for a statewide database that will record all payday loan transactions and keep track of peoples activities.
The idea is to avoid giving people multiple payday loans at one time, and keep track of those who do not pay them back in a timely manor.
California, Pennsylvania and other areas are also requesting similar databases.
13 states already have their own databases and have put into action that make sure lenders qualify for a new loan without having an outstanding one already.
Veritec Solutions LLC, the company who designs and services the databases, also runs call centers to help people who are denied loans.
New kid in town
Since early last year, the federal Consumer Financial Protection Bureau has been supervising payday lenders, and they are a bit up in arms over these state wide databases being supplied by Veritec Solutions.
Seems this agency is considering issuing its own rules over payday lending, as these databases are costing too much money to maintain and that cost is getting passed down from the lenders to the borrowers.
Veritec Solutions charges a fee from the payday lenders to run this database, and this in turn is getting passed onto the customers.
I would think that a minor adjustment to the present laws, like requiring the lenders to eat the cost and make it illegal to pass the fees on, would solve that problem.
More good news!
Fifteen states now have banned payday loans altogether, and the list is growing. Many lawmakers are tired of all the predatory behavior displayed by these loan companies, and are finally listening to the people and representing them accordingly.
We here at helppaydayloandebt.com have our own solution to help people with out of control payday loan debt.