Tallahassee - Here is another reason to avoid payday loan sharks. In order to prevent customers from bringing any sort of legal charges against the payday loan companies, lawmakers are willing to implement a bill. Attorneys have however criticized this effort. The attorneys say that payday loan companies usually charge high interest rates and victimize low income group.

In response to this, the payday loan companies have stated that they provide services usually to needy people. The lenders claim to have given up all sort of bad industry practices which are legally banned.

In response to this, the payday loan companies have stated that they provide services usually to needy people. The lenders claim to have given up all sort of bad industry practices which are termed illegal.

At the request of the payday loan companies, two bills are being forwarded, one in the Senate (Bill 2242) and the another one in the House (Bill 1343) in response to a Florida Supreme Court ruling. That particular ruling had been delivered for a particular case of Cardegna v Buckeye Cash Checking.

The learned justice has given the opinion that contracts entered into by the consumers may contain arbitrations for disputes. But consumers are usually charged excessive fees and the contract entered in to by them often becomes void.

A 5-1 decision says that consumers should be given the freedom to contest the legality of the provisions contained in the contract entered into by them before they finally opt for arbitration. The bills as per Sen. Charles Clarey, R-Destin will be scheduled for a hearing in the future because of the complexity arising due to the conflicting nature of the bill.

In this context, a Florida based assistant law professor in his recent findings has said that these loans are targeting areas surrounding military bases. These pay-day lenders are being criticized for marketing loans to military personals. Thus if the bills are passed, the consumers will be forced to enter into a contract with the payday lenders. In such cases, the court will not be able to help consumers if required.

Payday companies and lenders may claim to be free from illegal practices but the truth appears to be somewhat different. For most payday lenders, charging higher interest rates and excess fees is a regular practice and if the bill is passed, there shall be no such initiative to bring in illegal charges against such lenders. Therefore, for the benefit of consumers, the lawmakers need to give a second thought before implementing the bill.