We know it’s easy to be approved for an online loan in Nevada. What many of us don’t understand is that it used to be very easy to get approved for a bank-issued payday loan. The banks didn’t refer to these loans as payday loans, but that’s what they were. About a decade ago, most of the country’s largest banks rolled out a direct deposit advance. These were secured loans backed by the collateral of a customer’s upcoming direct deposit. Much like Las Vegas payday loans, these advances came with high interest rates and further penalties if they weren’t paid back in full. Many of these loans had higher interest rates than payday loans!
Direct Deposit Payday Loans in Las Vegas
Direct Deposit Advances were probably more popular than online payday loans in Nevada a few years ago. Anyone could have walked into their local Las Vegas or Reno branch and received a few hundred dollars as an advance for their next deposit. Payday loans were prevalent in cities like Las Vegas when the recession hit. Over the past decade, many finance companies made millions of dollars off these loans. Some tried to spin the offer as a customer service product. Banks claimed they gave customers access to same day cash payday loans when they needed it most. The only difference is that credit unions would never refer to these financial instruments as short-term loans.
Many of the highest-rated banks were making millions off this financing, but the Federal Government stopped it. Interestingly, many financial companies like Wells Fargo and Chase have long been against payday loan companies. They say the rates are too high and too many people are exploited. Now we know how the banks view the situation!
Which Banks Offer Payday Loans in Las Vegas
When the Government found out what was happening, they stopped this practice. The Office of the Comptroller issued a statement saying deposit advance loans and other short term loans issued by banks needed to be affordable. It’s clear to everyone involved that banks were trying to make Nevada payday companies look bad. All the while, they were rolling out lending products with higher interest rates. Often, the terms were worse than what Las Vegas payday loan companies provided. We see some debate about the difference in rates and payoff time. However, these loans had much higher rates when compared to Nevada installment loans.
Even today, most installment loans in Las Vegas are looked at as having high interest rates and fees. But there was never an issue when the banks did this a few years ago. In 2014, the Government mandated that banking institutions stop this practice. The changes meant more disclosure of information to their customers who take out these direct deposit advances—instead, most banks decided to scrap the short term lending programs.
It isn’t easy to get a direct deposit payday loan in Vegas
Now, this type of loan is exclusively provided by companies with physical offices in Las Vegas. Many companies provide online payday loans in Nevada. These online companies have higher fees than the traditional Las Vegas or Reno lenders. Make sure that any lender is registered with the state of Nevada. They must also disclose details about their lending practices and maximum loan amounts. Explaining the loans in more detail will increase the odds of winning your business. Any company that doesn’t want to disclose a financial contract or regulatory information is a big red flag. By researching your online company, you should be able to make a lending decision that suits your cash needs.