Personal Loans Are Proven as Fastest Growing Lending Category

(Newswire.net — July 28, 2018) San Bruno, California — In the first quarter, the outstanding balances for personal loans elevated to 18% ($120 billion). It is incredible how fast the number of loans issued by FinTech firms is growing.

In 2010, they originated roughly 1% of personal loans. In 2017, they reached 36%. Online platforms are launched to provide customers with unsecured personal loans. Some of such companies state that creditworthy borrowers have an opportunity to apply for no-fee, fixed-rate personal loans worth up to $30,000 for 2-6 years.

According to the head of one of such projects, a straightforward personal loan lender is a perfect solution for people who control debt repayments on credit cards with high interest rate. Online lending platforms are supposed to help consumers who are looking for an easier alternative to borrowing with credit cards. This additional financing option can change its rates and charge multiple fees.

One of the FinTech companies revealed that over $2 billion is already borrowed from it and in the next three years, this number can reach $13 billion in new loans for consumers. Thus, there is a concern that the banks will unite with the lending market while the credit conditions for consumers might decline.

This data shows that quick loans online are getting more and more popular. Yet, consumer lending market is not that ideal.  Some lending companies often target people who need extra cash via the Internet. They send them offers of high-interest loans in the mail. Experts often debate whether these practices are predatory.

There is one story from the real life to demonstrate it. Stephen Huggins from Lebanon got a mail with a check for $1,200. It was written that it is a loan, and a loan statement informed that it has a 33% interest rate. First, Huggins put it away, but later he cashed this check. Maybe, his car was broken and he had no cash to fix it.

He didn’t make a timely repayment. So he got a lawsuit worth $3,000, and Mariner Financial required him to cover attorney fees and court costs because they want to recoup their money as soon as possible.

David Anthony, the attorney, said that free money didn’t exist, and if you had got a check unsolicited in the mail, you should not accept it. Lenders abuse people who need something.  They have cash, and these people need this desperately. The court case against such people often turns into small claims courts.

Anthony has represented both borrowers and lenders. He claimed that the ones who push against the collection added by court often reach a deal, so the lender does not need protracted effort.

Mariner Financial has over 500,000 of customers and over 400 offices all over the U.S.

FOX 17 News tried to reach someone from Mariner Financial to get a comment on this story. Cord documents show that Huggins’ court continued.

This example shows how important it is to choose a reliable company which doesn’t need to push its services to stay afloat. Such companies do exist. A perfect place to search for such companies is Personal Money Service. This company aims at connecting a borrower with a lender. It does not cooperate with scams and tries to find a lender for every customer no matter how low his or her credit is.