Emergency Cash Advance: Little Known Facts

Copyright (c) 2011 Andrew Scherer

Perhaps you may have already noticed one glaring commonality with so much of the online information material regarding payday loans. That's that most all of it really explains payday loans and the facts surrounding them in relatively simple terms. That all you really have to do, is apply if you have a job and a bank account, and even with bad credit chances are good that you'll be excepted.

The true facts though, if you were to dig a little deeper and begin looking into it more, you would soon find there's far more to it than appears on the surface. For instance the one thing in particular that most people find surprising is the number of laws and regulations that are in place governing how they and even you can operate. What's worse is that there are no set federal standards.

Here's an interesting factoid. Would you believe that there are more payday loan franchise venues in the US than there are Burger King and McDonald's restaurants combined? So there's a lot heckuva lot of them. Then what makes this fact even more interesting is a total of six states in the US don't even allow them to operate inside their borders. They've banned them completely.

So with a spider web of regulations in place and some states even outright banning them, you may find it surprising that some state lawmakers continue to pass new laws restricting them. Not only the lenders but also the borrowers as well, and that means you. For example in some states now, you can only borrow up to $500 at one time from a payday lender. No matter how badly you need the money.

For instance another surprising fact is that increasingly more states are even starting to limit how many times you as a free citizen can borrow from a payday cash advance venue. Either online or locally. In fact some of the more stringent regulations that have been passed confine you to borrowing money from a payday loan site to as few as four times per year. No matter how badly you may need the money.

So you can see that when it comes to the topic of small cash loans online, it really is more complex than it can seem at first glance. You're also probably surprised to learn that laws they passed restricting your access to the sites. So now the next question, is why these laws in the first place? The answer it turns out is really quite basic and that is that these sites have become quite popular. Too popular in fact, and the result is that they have cut into the profits of banks and credit card providers.

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