San Fernando Valley Bankruptcy Lawyer – Let’s Go Fishing for Payday Loan Sharks.
Are you trapped by Payday loans? Drive through Van Nuys, Reseda, North Hollywood. Canoga Park, Mission Hills. All the Valley communities. There are Payday loan outlets everywhere. Do you have a payday loan? You should be investigating bankruptcy. Let me explain.
In California, payday loans are regulated. But there’s no real protection. The law lets lenders cash your post dated check. The limit is $300. The lender is allowed to give a 30 day loan. The fee is set at $45.00. If you cash a check for $300, you will receive $255.00. The fee is deducted up front. You got $245. But you owe $300. That works out to 460% interest on a two week loan. Compare that to a new car loan. A new car loan has an interest rate of around 5% or less. You can see what happens. You’re going to be shark food.
The California Department of Corporations regulates these loans. Here are the numbers for a recent year. 1.6 million Californians had 11 million payday loans. The loans totaled $2.9 billion. The average borrower does 7 loans per year. That average borrower spent about $315 in loan fees. Just to get a $300 loan.
Borrowers get trapped. It’s a vicious cycle. A lender can give you one loan at a time. Borrowers get around that. And shoot themselves in the foot. They go to several lenders at a time. State regulations don’t stop you from doing that. As a San Fernando Valley Bankruptcy Lawyer, I often see payday loans. Clients never have just one loan. They have three or four. The debt collectors on payday loans are vicious. Many clients relate the threats. Some have been told they face a bad check prosecution. Or that the law doesn’t let you file bankruptcy on them. Both of those threats are absolutely false.
Are you trapped by loansharks? I will help you break free.
Call for a free consultation. (818) 997-8394.
Do you like questions and answers? You’re sure to like “ASK LEON” . A question and answer column. San Fernando Valley Bankruptcy Lawyer Leon Bayer writes it. He answers real questions from readers. You will find it on the Nolo Publications bankruptcy blog. This blog is a publication of Bayer, Wishman & Leotta. You might also like our Human Guide to Bankruptcy. We handle emergency San Fernando Valley Bankruptcy cases. Free consultations. You can learn more about us at http://en.wikipedia.org/wiki/Leon_D._Bayer. See us on Google+.
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