National Payday Loan Blog

Curently in the Lead:

Extreme Payday Loan Regulations are Doomed to Fail, and Here’s Why

524195139_1c8a3ec97c_zIt seems that legislators and special interest groups are always waging war on Payday Loans. It has been this way for years on the municipal, state, and federal levels. Over the last decade, more regulations have been put in place for the private-lending industry than ever before. A new federal watchdog group the CFPB (Consumer Finance Protection Bureau) was even created to oversee this industry.

And how is that working out for them? Well, not the way they would like.

These groups seek to eliminate payday loans, without taking into consideration one important fact – millions of people rely on these loans.

Here’s a more specific example: the State of Ohio vs. Payday Loans


3 Things You Didn’t Know about Payday Loans

435300495_1c51aa37ee_zThink you know everything there is to know about payday loans, based on what you read in the news? Think again!

Get Money in Hours, not Days

Applying for a bank loan is a long and tedious process, rife with verifications, interviews, and stacks upon stacks of paperwork wrapped up in red tape. This is nothing new, it’s common knowledge. Borrowing money is hard – if it was easy, everyone would be doing it.

But payday lenders are not the banks. The borrowing process has been streamlined and simplified. Perhaps more importantly, the process has been sped up. (more…)

NPD Scholarship Competition a Huge Success


The winner of the 2015 NPD Scholarship Competition, with over 1000 votes, is Marshallee Brown! Congratulations to her! Read the winning essay here.


After a year hiatus, the National Payday Scholarship Essay Competition has returned bigger, better, and smarter than ever. After taking more essays than ever before, it’s safe to say the response has been out of this world!

The last batch of entries were posted the last day of July, and now the voting process is about to be closed out, as well.

All votes must be cast by tonight at midnight!

Anyone can vote for an essay, no sign-ups of any kind required! So post, share, click, read, and educate yourself to the interesting ideas being presented from students all over the US.

Voting is easy – you can give the essay a Facebook “like” a Twitter “tweet” or a “+1” on Google Plus. Or do them all and give your favorite essay three votes! (more…)

2015 NPD Scholarship Entry: Jumping Down the Rabbit Hole

scholsmallBy: Charlie King

Money. It seems to be the one true goal of our modern society, and we will do almost anything to acquire it. After all, think of all the wonderful things one can do with a bank full of cash. Buy new cars. New clothes. Go on the vacation of a lifetime. While all of these sound like amazing benefits, at what cost do they come? There are two sides to the coin, and payday loans can be the saving grace for some, but the devils advocate for most. Much like Alice in Wonderland, jumping down the rabbit hole and into a payday loan can end you up in a heaping load of trouble-and debt. (more…)

2015 NPD Scholarship Entry: A Good Idea Gone Bad

scholsmallBy: Mandy Hill

Payday loans are a good idea usually gone bad. The idea of getting a small loan before your next pay check could be a lifesaver for someone in an unusual, emergency situation. However, I think that most who apply for and obtain payday loans don’t know what they’re in for, which usually ends with the person getting hurt financially instead of getting a little bit of help in a tight spot. The way that payday loans work, most people end up having to pay a boat load of interest that they didn’t have the money for in the first place. This will lead them to have to take out another payday loan, and the cycle continues until they owe double, if not more than double what they originally borrowed. I believe the reason why so many people get sucked into this cycle is because they don’t understand exactly what a payday loan is and the potential risks involved. (more…)

2015 NPD Scholarship Entry: Payday Loan Options

scholsmallBy: Hart Robbins

Payday loans certainly fulfill a financial need in our society and probably worldwide.  In many instances these loans are life savers to meet a specific financial need.  Many financial institutions do not offer loans of this type and especially of this smaller size therefore payday loans have a niche in the financial arena.  Online availability along with store front locations of payday loans also helps make this product available to almost all people.  One possible modification that could be useful would be to use the payday loan to help create a pathway to establish or reestablish a person’s credit standing or pay history.  For instance if a client is unable to pay their payday loan in full when due, the payday loan company could convert the client’s payday loan into a weekly or monthly term loan.  This would help the client pay their loan back and allow the payday loan company to begin offering small term loans to their payday loan clients that have a good proven record of paying their payday loans back on time.  This would present another source of revenue for the payday loan company and offer another needed service to their payday loan clients.  (more…)

2015 NPD Scholarship Entry: Steps toward Equal Opportunity Attainment in America

scholsmallBy: Carlton Adams

In participating in a capitalistic system, great difficulty lies in striving to maximize revenue while also aiming to provide a quality service to the public. Finding balance between these two areas for a for-profit companies comes out of thoughtful reflection and a general willingness to reconcile these two concepts. However this is of particular importance in the payday loan industry given the seriousness of accruing debt in a society that significantly values credit scoring and the risk associated with lending money to an individual. At the same time though, in America’s managed market structure where private companies are afforded a considerable deal of freedom, the resulting effects (whether positive or negative) that these services have on their consumer base quality does not necessarily have to be a priority for these for-profit companies that inherently exist to generate revenue. (more…)

2015 NPD Scholarship Entry: First to Graduation, or Head First into Debt: Weighing the Payday Loan Options

scholsmallBy: Michael Ward

Payday loans are have been a topic of heated debate in recent years.  They are almost always presented in a bad light; however, payday loans have their merits.  What happens if your car transmission blows and you are unexpectedly faced with a 3000 dollar repair?  Some have the luxury of turning to family for a loan.  All families are not alike.  It would be extremely unlikely for someone like me to even collectively borrow that sum of money from my immediate family members.  Same for my education.  If I got to the last day of classes and was 1000 dollars away from being the first in my family to graduate,  my own family would be unable to help.  No one has good enough credit to qualify for a bank loan or even federal loan, the only option left is to take out a payday loan.  However, the current state of payday loans makes them the most dangerous option.  While I would graduate college, the debt and credit score hit I would likely receive directly afterward would make none of it worth it.  I can only imagine the turmoil many people experience after they receive payday loans for larger amounts that they cannot repay.  Payday loans should be reformed to better suit those who need them.  (more…)

2015 NPD Scholarship Entry: A Loan before Pay Day

scholsmallBy: Jamal Maryland


Perhaps an emergency crisis has come up and the bank account is on empty, what do you do? Your credit is abnormal so therefore the banks will not approve a loan for imperfect credit. Suddenly the doorbell goes off in one’s brain from previous advertised remembrances of Pay Day Loans. Pay Day Loans could be modified to help those in need by providing proof of need, financial education and credit establishment. (more…)

2015 NPD Scholarship Entry: The Domino Effect of Payday Loans

scholsmallBy: Brittani-Ann Campbell

Payday loans are great, it’s the interests that hurt you the most. Unfortunately, not everyone that receives payday loans will end up having the sufficient funds to pay off the outstanding balances. Therefore there needs to be a change in interest percentages and there also needs to be alternative ways in which they can pay the loans off off. When signing up for a payday loan you’re only thinking about the money and what you’re going to use it for. Not only until after the initial problem is resolved do you realize that you had just created a new hole for yourself. (more…)