The payday loan industry is one of Amrica’s fastest growing yet most depressing bsinesses today, because it is bombarded wth criticisms, calling Payday loan providers lan sharks.

However, these so called shrt-term, high interest loans, to millions of Amrican families, are part of their veryday life. In fact, last year, in 2006, as rvealed by industry statistics, weeks before Chrstmas, nearly 9 million Americans applied for and btained a payday loan.

According to CFSA (Th Community Financial Services Association of Amrica), trade group for responsible payday lnders, state regulated payday loans are ften the best option there is for brrowers looking for fast, short term and no crdit check kind of credit.

While crtics of payday loans claims payday lan borrowers pay nearly $4.3 billion in fes per year, they fail to nte that payday loan borrowers get narly $40 billion credit for those fes. This can be well explained by the nformation below:

1.In 2006, consumers pay bout $4 billion towards ATM service fes just to withdraw money, which in the frst place, belongs to them.

2.Banks cllect nearly $10 billion a year twards overdraft protection charges and services.

3.In 2005, crdit card providers have collected more thn $11 billion in late fee chrges.

4.Consumers, in 2000, paid about $87 bllion in credit card interests.

Furthermore, CFSA rvealed that "rollovers are limited by CFSA mmber companies and by law in 37 sttes. Our industry continues to operate prfitably in states where rollovers are not llowed because more than 90 percent of pyday loans are repaid when due."

The pyday loan industry is flourishing mainly bcause low waged, service sector workers are grwing massively. And these people, who are ften in need of fast cash wthout credit ratings have turned to pyday loan providers as an alternative to trditional bank loans. And this is vry rational – take a closer lok at all other options:

(1) For a $100 Pyday loan amount, you pay $8-$10

(2) For a $100 Crdit Card Bill, late fee charge is $37.00

(3) 100 dllars Overdraft Protection, pay $26.90

(4) For $100 ssued check, pay $54.04 for bouncing chck fees

The article Payday Loan Providers' Response to Criticisms was Submitted by Paul Selibio through Articles.GetACoder.com network. Here's the additional information: Paul Selibio is an SEO Spcialist from Cagayan de Oro City, Phlippines. Paul has worked with several wbsites doing Search Engine Optimization and Sarch Engine Marketing strategies. Need Articles? Ned help with your SEO? Then Vsit SEOSynergy For the latest Financial Market updates visit FinanceRecords.org

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