Payday Lending Resources

Last Updated 3-3-2021

Are you looking for a glossary that covers all applicable terms in the payday lending industry? Be sure to check out our newest page that covers everything you’ve ever wanted to know about payday loan terms. Direct Loan Lenders – Glossary of Terms

Do you know how a direct payday loan works? Do you know what the fees are and how long it will take to pay back a loan? Have you checked to see if your state even allows payday loan lenders? Do you know what other options are out there before you consider taking out a payday loan? Are you familiar with the difference between a short term unsecured loan and other types of financing like car title loans? If you don’t know the answers to all these questions then you may want to do your own research on how most of the large online companies work. We’ve provided a few select links below about the online lending industry. These articles should shed some light on how these types of online loans work. You can also see the problems you may run into if you borrow money for the wrong reason.

Remember, payday loans are designed for a short amount of time. They should only be used as a last resort. Direct payday lenders will usually issue a loan with the expectation that you’ll pay back the loan within 15 days or on your next pay date. If you don’t have a checking account or savings account this is a problem, as most withdrawals are usually done through direct deposit. You need to do all you can to pay off your loan within these first 15 days! If you allow your loan to continue or “rollover” you’ll end up in an endless cycle of short term lending debt. You’ll only be paying the interest on your payday loan each payment cycle. No payments are applied to your balance! If we can give you any advice it would be to understand how your online cash advance works before you sign off on it and get your money. While it’s refreshing to get cash, you’ll run into problems if you don’t understand how your loan works.

Use these links and resources to find the most up to date information about the direct lender payday loan and installment loan industry. The online loan industry is changing. Each state has different laws and regulations about installment loans and cash advances. It comes to happen that these laws are different in most states. In fact, there are many states with various types of pending legislation. These changes could alter the financing environment for years to come. Be sure you’re on top of your state’s laws when it comes to regulating online finance lenders. It’s legal in some states for an online company to offer you financing. While other states like New York and North Carolina have strict rules against payday loans. You can see your state’s specific rules here: State Rules and Regulations.

Be sure to check out the links listed below if you’re thinking of working with any online financing companies. There are many cheaper options you’ll want to check out before getting a payday loan from any of the large financial institutions or banks. These choices include a credit card cash advance, car title loan, or doing odd jobs for money. If you find yourself needing an online loan as a last option be sure it’s from a direct payday lender! Remember, you can always find the most recent list of direct payday loan lenders broken down by state at our home page.

Click here for a breakdown of direct payday loans issued by state:

Helpful Links Resources & Articles About Direct Payday Lenders:

• Consumer advocates hope for lending changes and increased redgulations with the new Biden administration.
  Consumer advocacy groups are expecting major changes to how payday loans are regulated as the Biden administration takes effect.
• Interest rate cap of short term loans in California will bring on major changes.
  Payday Loan Lender’s “Rent A Bank” model is under intense scrutiny in wake of the passage of AB 539.
• Wikipedia Page About Online Payday Loans
  This is a great resource for all things related to payday loans. Wikipedia lists information about federal and state regulations. This site also describes the current loan process of the biggest direct lenders.
• California Department of Corporations – Info on Short Term Loans
  The official California website gives state information about actual payday lenders.
• Direct Payday Loan Lenders and the Military
  Great resource direct from the Military Times. It breaks down how the Military views payday advance companies and the lending industry in general.
• The Effect of Payday Loans on the Military
  Another article about direct payday lenders and the military. This is an opinion piece from the New York Times about short term advances. Touches on issues that lending causes for the military.
• Federal Trade Commission – Information on how the Government view online finance companies.
  Information direct from the main regulatory body. The FTC has a great read on all things related to direct payday loan companies and direct installment lenders. Besides the CFPB the FTC is the main Government entity that regulates the loan industry. Read this before you get a payday loan and make sure you understand how these short term loans work!
• A Legal Viewpoint on the Online Cash Advance Industry
  This site gives an attorney’s viewpoint on the lending industry. Also touches on recent court cases involving some larger direct payday lenders and online tribal lending in general.
• Are there alternatives to getting a Payday Advance or Car Title Loan?
  Bankrate article on the many alternatives available if you’re looking into getting some type of online financing. Goes to show that getting a payday advance or installment loan shouldn’t always be your first option. They list examples such as, credit union loans, small bank loans, credit counseling, etc…
• USA.gov primer on the difference between payday loans, installment loans, online cash advance loans, etc..
  Straight from the federal government. A breakdown of the different types of loans available to consumers in a cash crunch. They list options such as installment loans, cash advances, tax refund loans, and car title loans.
• The Unfair Crackdown by the Government on actual Direct Payday Lenders
  This article takes an unorthodox view on the Government’s regulation of the direct payday loan industry. The article touches on what the author thinks the future of the online loan industry will look in a few years. The author discusses what needs to be done to ensure its survival.
• The Government Shutdown & It’s Effect on Direct Loans
  Do you think a government shutdown would have an effect on the large direct lenders? You’d be surprised what happened to the cash advance industry during the last government shutdown!
• Could we see an alternative option to bad credit loans?
  This site has an interesting take on some new payday loan alternatives such as peer to peer loans and government cash advances. They specifically mention workplace loans that may become popular soon. The article also touches on how direct payday lenders could still offer loans under this new setup.
• An insider’s look at the online lending industry
  A check cash company sold their cash advance business to a large Credit Union. This article delves into a few interesting stories about cash advance companies. One story shows how the largest direct payday lending companies view the credit union and tribal lending industries.

Still looking for more information on how direct payday lenders work?

Ok, no problem! We’re glad you’re being diligent. Here’s a good tidbit for you. Are you’re talking to a company that offers online loans? If so, you should first ask them if they’re licensed in the state you live in. It’s a definite red flag if they’re not licensed in your state. This means your options are limited if things go bad. The company may continue to take money out of your account without your authorization. Bottom line, you don’t know what a company will do if they’re not a licensed direct payday lender. Take regulations in California. If you live in California you have many options when it comes to finding a trusted lender. There are hundreds of storefront locations all throughout the state. You have many online lenders ready to help you with short term financing. Did you know that are limits in California when it comes to the fees that a lender can charge you? On top of that did you know that interest or late charges are not allowed in California? If you’re a California resident the only cost you should incur when taking out a payday loan is the up-front fee. That’s it! This fee is regulated by the state and as of our last update in 2021, it was $45.

This information is helpful if you’re searching the web for direct payday lenders. Use these resources if you come across a company that’s offering a loan with significant interest. It would be best to move on if you find a company with rates and fees higher than most firms. Either this company doesn’t know the laws governing direct payday loan lenders in California, or they simply don’t care. Regardless, you don’t want to do business with that company. Especially if they’re not in line with California regulations and restrictions. Work with firms your respect and be sure to discuss all terms and contract language with your lender.