Where is the gossip with payday loan lenders? If you take a look at all the articles written about the payday loan lender and its industry, you will find that the majority of them talk about all the bad and ugly which come from someone applying for a payday loan online. What happens to any of the positive or educational articles with payday loan lenders? Well, some might say that they are boring to read.
Let’s look at the popularity of talk show hosts on television. There are many educational newsworthy stories which are broadcast weekly. The more popular shows winning awards are those where the focus is on someone’s tragic personal story. Good ending or bad ending, the story spills the horrible or tragic details of someone’s life and that alone is attention grabbing to will keep a listener engaged. Some of the most controversial stories are found on talk shows tend to be “guilty pleasures” by many a viewer.
News travels fast when somebody is portrayed to be “wronged” financially. The article is more entertaining, it gets emotions involved, and we are more apt to share what we read to our friends. An intellectual article discussing the true APR for a payday loan lender may not keep everyone’s interest. No emotions get involved, no one was wronged, and the story topic of interest rates goes unread. When is the last time you heard the chatter in the break room about APR, how it is calculated and that it isn’t a true number to report about payday lenders?
So how do the payday lenders educate the masses and stand up for themselves against all the reports attacking their services? They just have to keep trying to report the truth of the industry and hope that the knowledge will trickle down into their brains over time.
A payday loan lender will continue to carry hope that they will be more welcome in the financial industry, especially as banks and credit unions begin to fund similar high interest loans. Is there a hidden message to not trust a payday loan lender but instead get the same, but unregulated, loan through your bank? Can much damage be done to your finances by not repaying the short-term loan? How does a frozen bank account sound? Will they have access to any type of deposit made to your account until it is repaid? The person who fell into deep financial trouble at the hands of a payday loan lender will rank higher in ratings. It’s our nature to focus on emotional topics. The horrendous annual percentage rate being charged a person who did not repay a two week term loan will catch someone’s attention. This story describing the events will be overly exaggerating the majority of loans, and readers will not give it a second thought. A two week loan spread out over 26 pay periods – does this sound like a short-term loan? An average person will have the payday loan paid off in less than half a year. Take the projected APR of 40% and cut it in half, you will have a loan at an APR very comparable to credit cards interest rates geared towards debtors with low credit scores. This information is less entertaining, but closer to the truth.