Reduce bad debt expenses for lenders
PayDay Loan 911 Real Time Solution Software will assist the industry in maximizing return on investment while reducing fraud, collection/recovery costs and multiple simultaneous borrowing.
With PayDay Loan 911 you will know both your long standing and new customers as well as bank knows theirs.
The concern with both roll over and back to back loans is that the penalty fees or charges associated with a new loan increases the borrower's short term debt load making the loan increasingly difficult to repay. For many borrowers with payday loans, they don't just owe one company, but have an average of three outstanding payday loans with a total balance owing over $2,500.
Borrowers may become dependent on payday loans and enter a cycle of debt, continually paying interest and other charges that quickly exceed the initial value of the loan in order or avoid defaulting. While in Ontario "rollover" loans are illegal, there is currently no effective way to enforce this law.
One of the major problems facing the payday loan industry is concurrent payday loans. This arises where a consumer takes out more than one payday loan from two or more payday loan operators on the strength of their next paycheque. At the present time, no Canadian province has an effective mechanism for preventing concurrent payday loans.
PayDay Loan 911 is proud to be able to offer Canadian governments software to satisfy all the requirements of a government verification database for payday loans.