New rules for the payday loan industry Nov 21, 2006 04:53 PM PST The payday loan industry is under new scrutiny. Recent federal legislation capped interest rates to protect those serving in the military. Are you using pay day loans to help make ends meet? A new education campaign warns consumers that short term high interest loans may not be what they seem and that new, year long loans are turning into a life sentence of repayment for consumers. "We tend to hear about payday loans when people have dug themselves into a hole," says Susan Robinson of Nellis Airman and Family Readiness Center. The Readiness Center at Nellis has been counseling airmen and their families for years. Robinson says financial problems have always been the top issue and echoing a recent Pentagon report that prompted federal legislation. Robinson says that misuse of payday loans can have a direct effect on our military. "It can keep them from being deployable, it can impact their security clearances. There are just all sorts of ramifications to getting into serious financial trouble." The campaign warns enlisted as well as civilian consumers that using short-term, high interest loans as a last ditch effort could get you into deeper financial trouble. Their message to payday loan customers: there is another way out. "There are so many alternatives that we don't think people are exploring just because these locations are so handy and they're right there and they make it seem so simple and people don't realize that it's not simple at all," said Senior Deputy Attorney General Kathleen Delaney. Before you borrow, consider adjusting the amount withheld for taxes. You're not getting interest on that extra money Uncle Sam takes, and you can put it to better use paying your bills. Ask your employer for an advance on your next paycheck. But don't forget that the following check will be less. Also, you can apply for programs that our local government and utilities offer, like Nevada Power's Energy Assistance Programs. If you signup for a payday loan, review the terms carefully. To skirt around the protective legislation, some lenders are changing the rules, lengthening the terms of the loan, but keeping the high rates, so you'll pay even more. And just because a lender says he or she doesn't sell payday loans doesn't mean you can't get in trouble. Even if you think you have bad credit, you should comparison shop. This is especially true with short term loans. It could save you thousands of dollars by the end of the loan. Where consumers can complain: Any consumer who suspects he or she may have been the victim of an illegal payday lending operations should contact the Financial Institutions Division at &702)486-4120. Additional information is also available on their website at www.fid.state.nv.us. Any consumer that wishes to seek debt counseling should contact Consumer Credit Counseling Service at (702) 364-0344 or toll free at (800) 451-4505. Additional information is also available on their website at www.cccnevada.org. Any consumer that has a question about his or her personal legal rights may contract Clark County Legal Services at (702) 386-1070 or toll-free at (800) 522-1070. Additional information is also available on their website at www.clarkcountylegal.com. General questions regarding these or other consumer issues may be directed to either the Consumer Affairs Division of the Nevada Department of Business and Industry or the Office of the Attorney General's Bureau of Consumer Protection. NCAD may be reached by calling (702) 486-7355 or visit their website at www.fyiconsumer.org. The BCP may be reached by calling (702) 486-3194 or you may visit the Attorney General's website at http://ag.state.nv.us.               Home|Apply Now!|FAQ|Fees|How It Works|Privacy|Legal|Contact Copyright © Global Cash Loan, 2007. All Rights Reserved.