A Look at the Quid Loan Reform Act 2009

The Quid Loan business has really grown in the last fifteen years increasing from an estimated 300 offices to over 24,000 in 2008. Along with the growth of this business, the amount of argument and insecurity surrounding the payday advance and loan system has very much been seen to have augmented as well. With recession really affecting the financial position, more and more people are looking to get a payday advance to help them out in their time of need. And it is the blame of the State to make sure a safe payday advance plan for its citizens.

On 26th February 2009, Rep. Luis Gutierrez', the Chairman of United States Financial institutions along with four co sponsor introduced the Payday Loan Reform Act of the year 2009. This reform claimed to supply safety and security for the feeble and in most cases absent customer protection policies against the nasty lenders in 23 states. Under this reform, rollovers were prevented and customers were freed from the debt trap by making a fee free 90 day repayment plan. The bill reduced the effective APR of a payday loan to 48% or 15 cents for every dollar loaned. This rate is lower than 23 current state rate caps, including California, Colorado and Illinois. This legislation claimed it would lower the APR cap for nearly 113 million Americans without any delay upon its enactment. The position quo in the payday advance lending business was forbidden as well.

The preceding reform introduced for the payday advance system was back in 2007.

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