Changes in the payday loan industry

Every financial industry has its ups and downs. As regulation becomes more commonplace, some companies become market leaders, while others fall to the wayside. One industry that immediately displays this behavior would have to be the payday loan industry. People have written about the perils of payday loans for a very long time. Between sky high interest rates and predatory lending habits like constantly dinging an account even after insufficient fund notifications, consumers have long felt the bite of unsavory business practices.

But new regulations have been on the horizon, and they have plenty of benefits for the consumer, as well as the companies that strived to be ethical from the beginning. While many companies will undoubtedly go out of business if they cannot be unscrupulous, the infographic below highlights the good reforms that may spur consumers to choose this type of short term financing when they would have avoided it in the past. Take a look and tell us what you think.

Infographic below is provided by Swift Money

Swift Money