There have been many cases where fast loans have become an unbearable burden for those who have failed to repay them on time. The state wants to prevent such situations, so it has changed the non-banking area. Here’s what you need to know.
In recent years, the non-banking financial market has undergone a spectacular evolution in Trempealeau County and has become a prevalent means of financing among individuals.
According to the National Commission of the Financial Market, at the end of 2014, the non-banking market amounted to $3.3 billion, and in the last quarter of 2019, it reached $10.3 billion – that is, it increased by more than three times.
The advantage of these loans is the speed with which the money comes. Most of the time, all you need is an ID card. Not even a paystub is required. But, not infrequently, the clients of these financial companies ended up in over-indebtedness and inability to pay because they could not pay their installments on time, and penalties were applied to them.
There were also cases when some Wisconsin lending companies attracted customers through false advertising – they were told they could take out interest-free loans. Still, in reality, they were not exempt from these payments. For example, at the end of last year, a non-banking organization was fined by the State Tax Service because of this.
That is why the state has decided to introduce stricter regulations in this sector and make legislative changes. Stay in touch on another news about loans.