6 March 2014
Payday Loans Without A Paycheck Or Job
No matter the time of year, holidays or not, the need for additional money may arise. While there are several ways to obtain this extra money, two of the most common ways include opening a new line of credit and taking out a personal loan from a bank. The question posed in this article is - between the two, which is more advantageous? Read on to find out!
Yes, you are reading the headline right. How can lenders give payday loans without a paycheck or job? That is exactly what is happening in North Carolina. NBC news affiliate WCNC is reporting that they investigated over a dozen payday loans lenders that are on a single street in Charlotte North Carolina and all of them said they would give a payday loan to a person who has an unemployment check. This means that a person who is not working and does not have a job is able to borrow money, and they are getting cash based on the limited income they receive for unemployment.
The report then went to the state laws to see if it was legal or not, and to their surprise it is completely legal. Which means a person doesn't even need to have a paycheck to get a payday loan. Not sure if this is the right thing or not, but certainly needs to be looked into more. It doesn't make sense to give money to a person that is already struggling, not working full time, and expect them to pay it back on time. It almost seems like they are creating a loop hole for companies to loan money to individuals who they know are not in a position to pay it back, and then tack on fees and interest to the person over a longer period.
Regulators need to look at situations like this and create legislation that not only would protect consumers, but the companies as well. There cannot be a good conclusion to loaning money to individuals who don't have jobs, and so its reasonable to assume that some of these types of loans would default. Loan companies should also consider not loaning money to individuals who don't have jobs, but they are a business and try to make money so if the person gets approved, then they give them the money. However, some of the loans cannot be good and companies are putting themselves at risk by lending money to people that don't have paychecks or a job.