My mother in law uses a cash advance system to get her disability checks before the first.?
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Answer:
It should be illegal, but everything is a shameless scam these days especially if your Senator is getting a cut to turn the other cheek.
This is a major problem all over North America.
Even I have used them in the past but will never go back again cause it's a financial trap. There is nothing illegal about these payday cash advance places. yet.
A year or so ago, there was a week-long news special in our newspaper about this phenomenon and how it traps those on the lower income scale.
What they concluded is that you will find the poorest areas saturated with these payday cash advance locations. They definitely pray on those who are not financially stable.
The second thing they mentioned was the way these places operate. Here in Canada there are strict rules governing the amounts of interest and how often it is charged. The newspaper broke down the service fees and noticed the cash advance places are using loopholes to charge more interest than legally allowed. The government is slow in fixing this issue and meanwhile countless people are facing bankruptcy.
The newspaper also documented how the lives of several people fell apart because they couldn't control the cycle of borrowing. People on a fixed income may borrow $500 at one shot plus service fees and interest but once its paid back, they are left with nothing to live on and must continue this cycle of borrowing once again.
I suggest you start writing letters and contacting your government representative to change the laws. Also have your mother-in-law speak with a credit counsellor. They can take all her payments and put them as one lump sum that she would pay back through them. But with the amount of debt accrued, they may flat out tell her to declare banruptcy.
Good luck to you.
Nobody is forcing your mother in law.
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