Frequently Asked Questions
Quick answers to the questions we get asked the most.
Isn't it true that payday loans are extremely expensive with exorbitant interest rates?
Myth: Payday loans are extremely expensive and have exorbitant interest rates.
Reality: Critics of payday lending options often cite an annual percentage rate of 390% to misrepresent the terms of a payday loan. In fact, the term of a payday loan is two weeks, not a whole year. The typical fee on a $100 loan is only $15, or simply 15% over the two-week term. The only way a borrower could ever reach the triple-digit APR cited by critics would be by rolling a loan over 26 times (a full year). Considering many states do not even allow loans to be rolled over once, this is unrealistic. In states the do permit rollover, CFSA members limit rollovers to a maximum of four or fewer.
Supposing a loan was rolled over for an entire year, the corresponding APR is actually more favorable when compared to the alternatives.
See how the rate on a $100 payday loan compares:
$100 payday advance with a $15 fee = 391% APR
$100 bounced check with $54 NSF/merchant fees = 1,409% APR
$100 credit card balance with a $37 late fee = 965% APR
$100 utility bill with $46 late/reconnect fees = 1,203% APR.
Isn't it true that payday loans trap users into a never ending "cycle of debt?"
Myth: Payday loans trap borrowers in a never-ending “cycle of debt.”
Reality: Although the phrase “cycle of debt” is a favorite among industry critics, it’s not based on the truth. In states that permit rollovers, CFSA members limit rollovers to four or the state limit—whichever is less. The reality is that a loan cannot be outstanding longer than eight weeks (a two-week loan rolled over four times).
Researchers and state regulators consistently report that 70 to 80% of customers use payday advances between once a year and about once a month. People who bounce checks and use overdraft protection often do so at a higher frequency. The fact is that a payday advance is more economical than other options.
Isn't it true that payday loans take advantage of poor people and minorities?
Myth: Payday lenders take advantage of poor people and minorities.
Reality: Critics have convinced much of the public that the payday advance industry exploits those less fortunate, however this presents a warped picture of the industry’s customers. Payday advance customers represent the heart of America’s middle class. Typically; hardworking adults who may not have much disposable income to use as a safety net, and are unwilling to tap their often meager savings to cover unexpected expenses.
Here are the facts:
• The majority of payday advance customers earn between $25,000 and $50,000 annually;
• 68% are under 45 years old; only 4% are over 65, compared to 20% of the population;
• 94% have a high school diploma or better, with 56% having some college or a degree;
• 42% own their own homes;
• The majority are married and 64% have children in the household; and,
• 100% have the steady incomes and active checking accounts required to receive an advance.*
*Source: The Credit Research Center, McDonough School of Business, Georgetown University, Gregory Elliehausen and Edward C. Lawrence. Payday Advance Credit in America: An Analysis of Customer Demand. April 2001.
Studies that suggest the payday advance industry targets the poor and minorities, often group payday lenders with other financial services such as pawnbrokers, car title lenders and check cashing outlets. These businesses are different, and have a different customer base. By definition, all payday advance customers have steady jobs and active bank accounts.
Isn't it true that payday lenders loan money to people who can't afford to pay it back?
Myth: Payday lenders loan money to people who cannot afford to pay it back.
Reality: More than 90% of payday loans are repaid when due, a fact confirmed by numerous state regulatory reports. Obviously, customers may not have the ability to repay when taking out an advance. Otherwise, they likely wouldn’t be seeking a loan. However, the allegation that lenders do not consider a customer’s ability to pay is completely false. Any competent payday lending operation has underwriting criteria in addition to the requirements of steady income and a checking account. The reason for these criteria is quite obvious; loans that are not repaid are bad for business.
Isn't it true that payday lenders don't want to be regulated?
Myth: Payday lenders do not want to be regulated.
Reality: It is quite the contrary. Our industry is currently regulated in 34 states, and CFSA is working to have regulation in all 50 states. While the industry of course, does not want to be regulated out of business (as industry critics would like), it has always supported sound and balanced regulations that protect consumers, while preserving their right to financial options.
Over the past decade, most states have created or maintained a regulatory environment that satisfies the robust consumer demand for these short-term low denomination loans, while making sure consumers aren’t taken advantage of. Working with CFSA and consumer advocates, state policy makers have introduced regulations that address industry concerns provide substantive consumer protections. The results have allowed millions of consumers to benefit from the convenience and economic advantages of payday advance services.
Isn't it true that consumers win if payday lenders are regulated out of business?
Myth: Consumers win if payday lenders are regulated out of business.
Reality: Critics’ allegations that consumers are better off without this option is far from the truth. Anti-business activists should not be in a position to determine what is right or wrong for hard-working Americans. So-called consumer interest groups and activists that work to ban the payday advance industry do not represent the vast majority of consumers who work hard to make ends meet. The bottom line is that consumers don’t want others making decisions for them. They especially don’t like the idea of people (who have probably never been short of cash) dictating where they can or cannot borrow money. If critics are successful in regulating the industry out of business, consumers will either be forced to pay ever increasing late payment penalties and over-draft fees, or turn to the often un-regulated offshore Internet lenders and dangerous loan sharks for their short-term credit needs.
At the end of the day, consumers win when they have a variety of options and are trusted to make financial decisions based on what’s best for them and their families.
Isn't it true that payday lenders use coercive collection practices?
Myth: Payday lenders use coercive collection practices.
Reality: CFSA member companies are committed to collecting past due accounts in a fair, lawful, and professional manner. In accordance with CFSA’s best practices, companies may not pursue criminal actions against a customer as a result of their check being returned unpaid. If it becomes necessary and is appropriate, however, companies may turn the account over to a collection agency.
Isn't it true payday lending has grown dramatically because of aggressive marketing?
Myth: Payday lending has grown dramatically because of aggressive marketing.
Reality: Payday lending has grown as a result of continued consumer demand and changing conditions in the financial services marketplace. Due largely to the high administrative costs, traditional financial institutions exited the small-denomination, short-term credit market. At the same time, bounced check fees, late payment penalties, and the costs of other short-term credit products rose dramatically. Consequently, the demand for new sources for small denomination and short-term loans became evident. In response to this new demand, legislation was enacted to create regulation and consumer protections that would allow the payday advance industry to fulfill the demands of the new market.
Isn't it true that payday lenders hide fees and mislead customers?
Myth: Payday lenders hide fees and mislead consumers.
Reality: The cost of a payday advance is fully disclosed to customers through in store signs and disclosure agreements. Moreover, in accordance with the Truth in Lending Act (TILA), the terms of the loan are clearly outlined in the lending agreement. Payday advances involve one-time flat fees and there are no hidden charges, balloon payments or accruing interest. CFSA members also provide an educational brochure emphasizing responsible use of the product and offer a free right of rescission should the customer change their mind.
In a recent survey, 96% of payday loan customers said they were aware of the finance charge. A recent study by the Annie E. Casey Foundation even found that, “Customers do make a cost analysis in comparing the price of a payday loan with the alternatives…”
Isn't it true that anti-payday lending activists have consumers' best interests in mind?
Myth: Anti-payday lending activists have consumers’ best interest in mind.
Reality: Anti-payday lending activists do not represent the views of millions of people who use payday advances responsibly and are glad to have somewhere to turn when they need quick access to credit.
The reality is that while they claim to act in the best interest of the consumer, anti-payday lending activists seek to limit the already small number of short-term credit options available to consumers in need.
What is an Installment Loan?
An installment loan is an unsecured, short-term loan to help you out with emergency expenses. People choose installment loans to handle life’s unexpected events such as car repairs, home repairs, or other short-term needs. This option helps them avoid costly bounced-check fees or late payment fees.
What is the difference between a Payday Loan and an Installment Loan?
Both a payday loan and an installment loan are short-term loans designed to help you out with an emergency expense. A payday loan requires the borrower to pay the amount of the loan plus a fee, in full, at the end of the term, which is usually only one pay cycle. An installment loan offers greater flexibility by spreading the payments out over a longer time period. Easy Money EMG installment loans offer both the flexibility of more time to re-pay the loan AND there’s no penalty for paying the loan off early.
I have bad credit; is that a problem?
Bad credit? No problem. Easy Money EMG believes everyone faces challenges in life and deserve a chance when they need help, so we work hard to find a way to say YES.
We lend to people with all kinds of credit scores and our proprietary underwriting system helps us lend to people who might otherwise get turned down. We do not use traditional credit agencies to evaluate your credit worthiness, but instead use a trusted alternative agency, to assist in determining the loan amount that is right for you. While there are circumstances that can result in Easy Money EMG turning down a loan, you will find that we really do try to find a way to help.
FICO® credit scores are not used to help you apply for a Easy Money EMG installment loan. You are more than a number here; we look at the entire person and consider your ability to repay your loan. We WANT you to be successful and build your credit with us, so that if you ever need help again, you know that you have us in your corner.
Do FICO credit scores impact my ability to get a loan?
Not at Easy Money EMG. FICO® credit scores do not have an impact on getting a Easy Money EMG installment loan.
I only need cash for a short time; can I pay the loan off early?
No problem. Easy Money EMG installment loans are based on simple interest. That means your loan only accrues interest on the days you have the loan. If you pay your loan off early, the total cost of the loan is less than if you pay it off over the entire term.
How much can I borrow?
We always recommend that someone only borrow the amount required to handle their short-term need. Every individual is different and the amount one can borrow varies from state-to-state. When you apply for a loan with Easy Money EMG, we use your personal information to determine a loan amount that will work with your unique situation.
Can the amount I am eligible to borrow increase?
Your ability to borrow can increase with successful loan performance. Did you complete the term of the loan? Great! Were you on time every time? Even better! When you choose to take out a loan with Easy Money EMG, you build your credit with every on-time payment.
Do you hold a check for my loan?
We do not hold a check for your loan.
What are your interest rates?
Interest rates vary by product, state, and individual. Please refer to the product pages in the state you reside in for details on installment loan amounts and terms available where you live.
Do you offer loans to the Military?
We are very sorry, but we do not offer loans to the military at this time.
Is Easy Money EMG regulated?
Yes, Easy Money EMG offers short-term loan products that are regulated at the state level and at the federal level. We comply with state regulations and the CFPB (Consumer Financial Protection Bureau) on the federal level, as well as many federal regulations including the Federal Truth in Lending Act (TILA), Fair Debt Collection Practices Act (FDCPA), Wall Street Reform and Consumer Protection Act, the Gramm-Leach Bliley Act (GLBA), and the John Warner National Defense Authorization Act. We work very hard ensuring that compliance is part of our culture and invest significant time, resources and capital in making sure that our products, services and experience meet or exceed what is required.
How do I make a payment?
- Log into your account on the website and press ‘make a payment’
On the APP: Just log-in and press “make a payment”
In-Store: If you live near one of our locations, you can always make payments at a local store during business hours. To find a store near you and their hours of operation, check our locations page!
What is my account status?
You can check your account status anytime by logging into the Easy Money EMG App or online at www.easymoneynow.com.
How do I update my personal/bank info?
Just log into your account on the Easy Money EMG App or at www.easymoneynow.com and click on “My Account”, then select “Bank Details”. There you will find an option to update/add bank information.
Is my application secure?
Easy Money EMG applies the latest industry standards for security to protect our members’ personal information.
How to recognize fraudulent offers
Beware of personal loan offers that:
- Request that you send money to the lender in ‘good faith’ or to ‘secure’ your loan with a wire transfer or a prepaid card. Real lenders are in the business of lending money to people with an emergency need, not asking for money up front from people in their time of need.
- Beware of companies asking for personal financial information if you did not initiate the transaction. Always be sure you are speaking with a legitimate lender. If you did not initiate the call, hang up or ask the reason for the call. You can call them back using legitimate sources, such as contact numbers found on the company website.