A new law passed by the House of Representatives is going to make it a lot harder for unlicensed payday loan lenders to lend. We’ve discussed this issue on the Cornerstone Payday blog before, why unlicensed lenders can be a nuisance to the good payday loan name. Unlicensed lenders do not have to abide by industry best practices, and they rarely follow government rules and regulations. The laws regarding payday loan lending were established to protect low income Americans from getting trapped in a cycle of debt. Those who lack funds, take out a loan without the ability to pay it back. Without regulations, certain online lenders were charging astronomical rates and fees per loan. The government stepped in, and now all licensed payday loan lenders charge rates and fees that are governed by the state in which they are licensed. The problem is, that there are many unlicensed payday loan lenders still lending in states which have banned cash advance lending. Some people within the industry feel as though the extent of government regulations has pushed many to lend illegally, without a license. The problem with unlicensed lenders is that they can run their business in which way they choose. If you do not pay your loan on time, they may harass you with threatening phone calls. They can also charge higher than normal interest rates and fees. The new law passed by the House of Representatives says that cash loans that were provided by unlicensed lenders will be forgiven. The law is supposed to prevent lenders from operating without a license. This also means that if you took out a payday loan from an unlicensed lender you can avoid paying the high interest and fees they are illegally charging. At Cornerstone Payday we only work with licensed online cash advance lenders. Each of our lenders is licensed to lend in the state in which you are applying. The fees and interest rates are governed by the laws and regulations initiated in those states. Not all online payday loan websites work directly with licensed payday loan lenders, but at Cornerstone Payday we make sure to. Apply for an online payday loan today, knowing that you’re working with someone who is abiding by government regulations.