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Quick cash loan alternatives promoted through new Website
The quandary of high priced payday loans is one that troubles the legislators in a number of states. On the one hand, lawmakers want to protect their constituents from predatory lending. On the other hand, they see it as their job to promote business in their state. In some cases, the line between hurting one group and helping another is a fine one. The state of Oregon has long been troubled by the explosive growth of the quick cash industry, and recently enacted a law that will toughen the state’s lending laws. As that law does not take effect for nearly a year, the state has taken the proactive step of setting up a Website and a toll-free 800 number to help make consumers aware of the lending alternatives that may be available to them.
Payday loan stores have become ubiquitous in most cities in America, growing from some 10,000 stores five years ago to more than 22,000 today. While some states restrict them or ban them altogether, most states have fairly lax regulations regarding these loan stores. A typical cash advance loan permits a customer to borrow anywhere from $100 to $500 for a two week period of time. As a fee, the borrower agrees to pay anywhere between $10 and $30 per $100 borrowed, and the loan is to be repaid in two weeks. If the loan cannot be repaid, the borrower may pay the fee a second time, which renews the agreement for another two weeks. The fees may seem small, but considered as annual interest, they can amount to more than 500% annually.
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