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The Federal Reserve is cracking down on payday lenders and banks that can’t comply with federal regulations, but many credit card companies say they are just as easy to make payments.
“I’m a big believer in the fact that we have to protect consumers from the dangers of payday lenders,” said Bill O’Reilly, CEO of Pay-Per-View, which provides online payday loans.
“We can’t allow people to go into a bank and use a credit-card to pay for a product.”
The Federal Reserve says banks and other financial institutions must ensure they have a system in place to protect customers.
Payday loans have become a popular form of financing in recent years, with one recent study estimating that they can help cover the cost of a $600 purchase for a family of four.
Banks have long tried to limit the amount of money they can charge consumers for credit cards and payday loans, but they are often unable to do so because of the Federal Reserve’s rules.
The agency regulates financial institutions under the Fair Credit Reporting Act, or FCRA, which requires them to report on the transactions of all people they deal with to the government.
The Fed is requiring financial institutions to make their customers aware of the risks associated with payday loans and also to report them to the Federal Trade Commission, which can levy fines.
The commission has been cracking down hard on payday loan lenders, which have been known to lie about the nature of the loans they are offering.
But it has not taken action on banks, and O’Reillys comments come after some consumer advocates and lawmakers expressed concerns about the way some lenders operate.
Some of the biggest payday lenders, including PNC and Bank of America, have been fined or shut down for their deceptive practices, including charging higher rates and offering lower interest rates than they could pay for.
O’Reilly says he has never heard of a lender using a fraudulent credit card to make a purchase.
One of his biggest fears is that payday lenders will charge customers more for credit card purchases.
“There’s a lot of concern about payday loans,” O’Connor said.
“They are used as a way to defraud people, and if the government comes in and says they’re not going to do that, they are going to have a very hard time trying to get away with it.”
Payday lenders have been accused of offering deceptive terms to lure customers into the industry.
A 2008 lawsuit against Pay-Ply accused a subsidiary of PNC of offering “substantially inflated” rates for credit-cards.
The FTC is also investigating payday loan providers that offer the lowest interest rates on credit cards, according to a report in The Wall Street Journal.
In a letter to Congress last month, the agency said it is aware of “substantial consumer complaints” about predatory payday lending practices.
A report in the New York Times last month alleged that payday loan firms have raised rates more than 400 percent on credit- cards and other consumer-related debt, and that the rate increases were not disclosed to customers.
“We’ve seen these practices being perpetrated on consumers, and we’ve heard a lot about it, but we’ve also heard complaints,” OReilly said.
However, the Federal Deposit Insurance Corp. has also taken action against payday lenders in recent months.
FDCIR announced that it was investigating the company for a range of complaints about deceptive practices.
The agency has said that it is considering the complaint, and will take a more definitive action when it hears more information.
O’Connor is a big fan of payday lending and says the FTC is doing a great job of cracking down.
He said he believes that the government should be regulating the industry like any other.
According to the FTC, only a handful of states have passed laws regulating payday lending, but the agency says states that do so need to pass similar laws.
The regulator has also issued several warning letters to payday lenders.
Despite the government crackdown, O’Brien says he is still confident in the industry and its ability to provide the same high-quality products that he sees in his store.
“I think we can compete with any other type of business, and I think we’re still able to compete,” he said.