Internet – Payday Loan Stores in Malta?

Internet – Payday Loan Stores in Malta?

Yes – that’s right.  That Payday Loan Store you located on line, and just gave all your checking account information to, may actually be located in Malta – or St. Nevins Kitts in the West Indies!  What legal remedies do you have with a company located outside the U.S.?!!  Watch the wording on the loan documents – did you waive your rights under US law?  The loan documents from some Tribal Payday Loans that claim just that!

Statistics show that payday loan companies aim to take advantage of lower income or temporarily disadvantaged consumers.  You’ll rarely find any payday loan stores in the upper-middle class suburbs where borrowers could actually afford to repay the loans.  Instead you will find them in lower income neighborhoods.  The Truth in Lending Act requires all lenders to disclose the cost of the loan in writing before you sign any agreement to take out the loan.  Many loans have an annual percentage rate as high as 640%!  You may find some short term installment loans with percentages even higher.

So stop and think before using the payday loan store to meet a financial need.  Is there another way to deal with the financial situation you are in?  Borrowers often find themselves taking out new payday loans to cover old payday loans and ultimately end up owing thousands of dollars on what started out as a few hundred dollars of debt.  Why take the risk with your information or the risk that you will be forever indebted to these companies?

When you create a spending plan that takes into consideration the financial emergencies that may come up, you protect yourself from being tempted to use Payday loans.  A car repair doesn’t have to be an emergency; eventually we all have car repairs.  If you start putting a little money aside each month, before you know it, you will have the money set aside for that day when that car repair presents itself.   Most things that we categorize as emergencies can be planned for.  If we can plan for them, are they really emergencies or are they just unplanned expenses?  Don’t get caught in the trap where you have to rely on loans to get you through your month.  Make your spending plan now.  If you have one, it may be time to review it and make corrections as necessary.  You can control your finances; it does not have to control you.



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