What You Need to Know About an American Cash Advance Loan
The last decade or so has seen an increase in the number of people living the ‘American dream’. With the strict requirements of mortgage lending being lifted and the increase in the number of 100% mortgages offered, has seen a rise in the number of homeowners in this country. But with this has also come a dramatic rise in the nation’s personal debt and many people are finding themselves heavily committed financially. More and more individuals are being placed in a difficult position when faced with an emergency that requires upfront payment and, because of this there has been a huge increase in the number of people obtaining American cash advance loans.
American cash advance loans have been the subject of some controversy in recent years. This was primarily because of the irresponsible lending and borrowing that surrounded the American cash advance industry. When these types of loans first became available there were very few regulations in place, which meant that payday lenders were able to charge astronomical fees for an American cash advance and many people taking out such loans were faced with ongoing financial hardship as a result.
Today, there is a great deal of legislation in place to protect borrowers from predatory lenders and this has resulted in American cash advance loan companies being forced to act more responsibly when it comes to offering payday loans. Regulations pertaining to American cash advance loans are primarily set by the individual states and, while these laws vary considerably from one state to another, there are very few who do not have in place some kind of legislation in regard to payday loans.
Currently there are fifteen states that have outlawed payday lending entirely, but the majority of states have set fair and reasonable restrictions that help protect borrowers and still allow American cash advance lenders to operate profitably. Much of the legislation that governs payday lending stipulates the maximum amount that can be obtained through an American cash advance and gives guidelines for the amount a lender is able to charge for these loans so that these loans do not exceed a certain annual percentage rate.
The regulation of the American cash advance industry has seen a rapid increase in the number of people taking out such loans. This has lead to a rise in the number of financial institutions and lending companies offering these loans making the payday loan industry much more competitive.
The shakeup of the cash loan industry has certainly helped borrowers. It is now much easier and more affordable to obtain an American cash advance, which has meant that more and more people can take advantage of the benefits that payday loans have to offer.