Payday lenders lick their chops in anticipation of a new credit surge
AUBURN, Caliph .– (BUSINESS WIRE) – As unemployment benefits expire and moratoriums on evictions, vehicle seizures, and student loan recovery and other financial obligations abate, payday lenders fearfully anticipate a surge in new loan business.
“The payday loan industry saw lending decrease by 40% in 2020,” said Lyle Solomon, Principal Attorney for Oak View Law Group, a nationally recognized law firm specializing in consumer debt relief. “Now as people struggle to find the money they need to make their payments, these lenders are licking each other in anticipation of the surge in new business coming through the doors.”
Payday loans, which are ultra-short, high-yielding loans typically valued at $ 1,000 or less, have been shown to be primarily used to help financially troubled consumers make ends meet. These loans are viewed as predatory by many. With payday loan interest rates averaging 391% APR nationally and 460% APR in California (Source: Center for Responsible Lending), these loans can get people into a vicious circle of debt.
According to The Pew Charitable Trust, payday loan borrowers are typically 25-49 years old and earn $ 30,000 a year or less. These borrowers spend an average of $ 520 annually in fees to borrow repeatedly $ 375.
Firms like Oak View Law Group have created entire practices around debt relief and payday loan processing. “We are helping borrowers free borrowers from the clutches of predatory payday lenders and put them on the path to financial health,” said Solomon.
According to Solomon, there are several ways borrowers can get rid of payday loans. “The first step is for you or your clearing company to negotiate with your current lender (s) to reduce loan balances and waive penalties and fees.
“Once these cuts are successfully negotiated, you have the option to consolidate your debts into a single loan with an affordable monthly payment, or to enter a payday loan debt management plan that lowers the monthly payments for each of your loans and a personalized budget plan to keep you on.” Stay on course Pay off payday loan debts. ”
Bankruptcy is a borrower’s last resort option, according to Solomon, due to the damage it will ultimately inflict on personal credit.
To learn more about Oak View Law Group’s services, visit OVLG.com or call (800) 530-6854.
About the Oak View Law Group
Founded in 2007, Oak View Law Group is a national law firm specializing in providing debt relief to troubled consumers. The company has successfully served more than 7,000 customers and prides itself on customer satisfaction backed by their 100% no questions asked refund policy. The firm currently has more than 100 practicing attorneys and offices in 7 states including California, Florida, Illinois, Minnesota, Missouri, New Jersey, and Tennessee. www.ovlg.com