Just in case you haven't heard yet, the number of people in the United States who are applying for pay day loans is increasing steadily, and that is particularly true over the past 6 years. It doesn't look like this trend is going to slow down any time soon. Some states have even enacted legislative regulations in an attempt to control the payday loan sector as a response to complaints that have been filled and allegations that some loan companies are engaging in loan shark activities.
When you take a look at the big picture, you will find that there is not an excessively high ratio of complaints in the cash advance loan industry at all. You will even find that one provider of instant loans reports that the incidence of customer complaints is under 4 percent. If you had a mind to, you could flip that around to have it say that there is a 96 percent customer satisfaction rate.
When it comes to the financial products industry, particularly pay day loan products, it is tempting to believe that the most common complaints from consumers would be about predatory lending practices, high interest rates and other types of issues, but you will get a different picture when you take a look at the actual complaints that have been filed.
Following are 3 typical types of complaints that have been filed against cash advance type loan providers.
1. According to research, the number one most common complaint about quick cash loan companies is that they make it simple to apply for a loan online and get approval instantly without also providing an easy way to increase the amount of payments on their websites. While this may seem like a trivial matter, it can be very serious for those consumers who have taken out a payday loan and wish to pay it off more quickly than the terms allow.
2. Late payment fees have to take second place here. Similar to credit card companies pay day loan companies charge a late fee of at least 15%, which can mean that you would be paying on a 0 payment if you were late one day. It seems that these late fees can add up to a significant amount of income for the payday loan industry.
3. Also a common complaint about pay day loan companies is that they do not offer 24-hour support for their customers. Since there is access to the sites where an individual can fill out an application on the payday loan website, there is not that 24-hour support from all providers if you need to contact customer service for assistance during other than normal office hours.
Taking the above into consideration, it is easy to see why so many more people are taking advantage of pay day loans when they need quick money.