Short term loans may rise in popularity, be a target for lawmakers

Many Americans today find themselves in need of alternative credit lenders due to less-than-perfect credit or unexpected economic hardships. Working individuals who need to borrow cash quickly may turn to short term loans to finance auto or home repairs or medical emergencies. In this way, the consumer benefits from having access to short term credit. At the same time, some lawmakers are concerned about short term lending. Some cities, like San Antonio, Texas, have implemented ordinances against the practice. However, state and federal laws may contradict with city ordinances when it comes to short term lenders, which may lead to new regulations in the future. Short term loan providers should be familiar with applicable laws and ordinances and maintain compliance at all times. Issues of personal data stored in hard copy or digital files should be kept secure. The lender provides a service for the client, so tailoring policies to customer needs drives business. Professional lenders should consider the ways that technology can assist in this process, from managing email lists to promoting services via social networks - a more recognized firm might help clients feel like they are in good hands. Reliability, professionalism and compliance will help lenders maintain a positive public image in the industry and among clients.