Payday loans do not work like regular loans. The records of traditional loans may be kept for 6-10 years. Payday lenders do not usually report to the credit bureaus, even in case of overdue repayments. But the payday loan may be filed once it is passed to the collectors after the lender sells the debts.
The majority of borrowers who use payday loans are low-income individuals making less than $30,000 per year who fell behind on their monthly expenses, including rent, utility bills, or car payments, according to the Consumer Financial Protection Bureau. Many are unemployed.Jun 18, 2020
They say: “The payday industry is already highly regulated.” In reality: State payday laws almost always favor lenders, not consumers. In states with laws with real consumer protections, payday lenders ignore unfavorable state provisions, claiming federal preemption.