Internet Lenders Impede the Effectiveness of Tougher Payday Loan Laws

Published on:
12 September 2006 at 10:21 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00009755-internet-lenders-impede-the-effectiveness/

by Patrick Lunsford, CollectionIndustry.com

There are monsters lurking in the tubes of the Internet; dangerous and greedy monsters, apparently.

Although Florida passed legislation in 2001 limiting the dollar amount and number of loans payday lenders could make to individual consumers – $500 maximum per loan with only one loan outstanding at a time – consumers are skirting the law by using payday lenders on the Internet.

Florida requires that payday lenders check a state-run database to verify that a consumer does not already have a payday loan outstanding. But payday loans obtained through the Internet and other non-reporting avenues don’t show up on the database, writes the Bradenton Herald in a Sunday article.

Internet Lenders Impede the Effectiveness of Tougher Payday Loan Laws

Unknown Author

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