It has been reported that with a lethargic economy, more Oklahomans are planning to apply to high-cost loans with equivalent annual interest up to 500% or more to cope with the pressure of difficult times.
A report on Oklahoma's payday cash advance lending industry pointed out that more than 1 million loan transactions were made from July 2007 through June 2008. The report indicates the average borrower took out more than nine loans during that period.
According to Former Oklahoma Department of Consumer Credit Administrator Donald Hardin, the high-interest loans are demonstrated to exploit low-income people who continuously facing inadequate finance to cope up with their monthly bills.
However, Dylan White, operations manager for Federal Cash Advance of Oklahoma is not satisfied with this saying.
He says many Oklahomans who have adverse credit ratings which might arise due to arrears, defaults, missed payments, bankruptcy and have to rely on their monthly payday often face few good alternatives when they require access to instant cash to cope with an emergency. Emergency can crop up at any point of time, so consumers need to take a smart decision to tackle with such critical situation. At such tough times, these loans prove to be effective as it provides instant financial relief to the consumers before the arrival of next payday.
A 2003 Oklahoma state law specifically authorizes payday cash advance deferred deposit lending and sets maximum interest rates.
