Payday Loan Laws

Payday loan laws have always been somewhat confusing. Different states regulate things differently, and the current political environment all but ensures that changes will be made to existing payday loan laws. President Elect Barack Obama campaigned hard on the issue, and his Senate colleague from Illinois, Sen. Dick Durbin, has now taken up the fight. He has proposed a law that would cap rates charged for payday loans, car title loans, and other forms of consumer credit at 36% annual interest. But for the payday lending industry, which typically loans to borrowers with incredibly high risk profiles, capping the rate at 36% would all but eliminate their ability to lend to some borrowers. That is why many lenders who have been involved in payday lending are now looking to move into more traditional consumer lending type markets.

Kwik-Loan is a complete suite of software tools that was developed specifically for the consumer finance industry. This suite of modules helps manage every facet of a lending business, from sourcing new loans, to automated credit decisions to the management of a loan portfolio, complete with web based access for dealers, branches and customers. With the pending changes to the payday loan laws, Kwik-Loan is eager to help lenders make the transition from payday lending to more traditional forms of consumer lending. Please contact us if you would like to talk to a representative about the opportunities presented by these changes to payday loan laws.

Click here to learn more about how Kwik-Loan can help you transition your payday lending business.