PSU-IPPRO

Years ago, cash advance stores offered customers access to the money in their upcoming paychecks. Many people criticized this as unsafe and predatory. Now however, the industry has become safe, simple, and protected by federal and state legislation. The ability and ease of obtaining a payday loan paired with legislative protections has allowed Americans to receive cash advances with confidence. Government regulation is strong proof that the cash advance industry is truly a mature business model.

The payday loan industry has been able to re-invent itself with the backing of legislation that guarantees consistency and fairness. Federal usury regulations have set acceptable APR limits on payday loans in order to establish parity across the market and protect consumers in tough economic times. Most states have additional legislative protections placed for borrowers. Some states also employ a yearly limit on the number of cash advances; while others will offer no interest/no fee repayment plans of those who cannot meet their payments.

Ultimately, making payday advance loans easier, more reliable, and safer has helped both the working class as well as the payday loan industry. The use of cash advances has helped open credit opportunities to families who otherwise would not be able to utilize a loan.