AUBURN, Calif.--(BUSINESS WIRE)--As unemployment pandemic benefits expire and moratoriums on evictions, car repossessions, and collection of student loans and other financial obligations lift, payday lenders are anxiously anticipating a surge of new loan business.
“The payday loan industry saw a 40% decline in loans in 2020,” stated Lyle Solomon, Principal Attorney of Oak View Law Group, a nationally recognized law firm specializing in debt relief services for consumers. “Now, as people scramble to find the money they need to make their payments, these lenders are licking their chops in anticipation of the surge of new business that will be coming through the doors.”
Payday loans, which are ultra-short-term, high-interest loans typically in amounts of $1,000 or less, have been shown to be used primarily to help financially struggling consumers make ends meet. These loans are considered predatory by many. With interest rates on payday loans averaging 391% APR nationally and 460% APR in California (source: Center for Responsible Lending), these loans can trap people in a vicious cycle of debt.
According to The Pew Charitable Trust, payday loan borrowers are typically 25-49 years of age and earn $30,000 per year or less. These borrowers spend an average of $520 in fees annually to repeatedly borrow $375.
Firms such as Oak View Law Group have created entire practices around debt relief and payday loan settlement services. “We help free borrowers from the grips of predatory payday lenders and put them on a path to financial health,” stated Solomon.
According to Solomon, there are several ways borrowers can get rid of payday loans. “The first step is for you, or your settlement company, to negotiate with your current lender(s) for a reduction in loan balances and waiver of penalties and fees.
"Once these reductions are successfully negotiated, you’ll have the option of consolidating your debt into a single loan with an affordable monthly payment, or entering a payday loan debt management plan, which will lower the monthly payments on each of your loans and establish a personalized budget plan to keep you on track as you pay off your payday loan debts.”
Bankruptcy, according to Solomon, is a borrower's last option due to the damage it will ultimately cause to personal credit.
To learn more about the services available through Oak View Law Group visit OVLG.com or call (800) 530-6854.
About Oak View Law Group
Founded in 2007, Oak View Law Group is a national practice specializing in providing debt relief services to struggling consumers. The firm has successfully helped more than 7,000 clients and prides itself on client satisfaction which is backed by its No Questions Asked 100% Refund Policy. The firm currently has more than 100 practicing attorneys and offices in 7 states including California, Florida, Illinois, Minnesota, Missouri, New Jersey and Tennessee. www.ovlg.com
