Payday Loan Scams

| January 3, 2012

Payday loans are very expensive way to get out of a temporary cash flow problem. Often these loans have interest that amounts to 400%. It is often cheaper to pay the late fee or the cut on charge for utilities than to pay the exorbitant interest payday loans charge. It got so bad for military personnel that the government had to step in and insist that lenders put a cap on the amount that they charged the military. That maximum is now only 36%. If they attempt to charge more to members of the military the loan is void.

The trouble with payday loan sites is that they require you to divulge a lot of sensitive personal information. Unfortunately, their sites are not like Leavenworth and their sites are regularly hacked. The hackers try to use this information to their advantage. Many people have reported that someone with a foreign accent has called them and demanded that they pay back their payday loan. The person may not have an outstanding loan, but they are still being threatened with a lawsuit if they do not repay to loan. They have all your personal information, so you may be fooled into believing that you actually must pay this debt. Some people have succumbed and paid it.

That’s just one of the prevalent scams associated with payday loans. Another scam is when you give all your banking and credit card information to them and suddenly you find that you have subscribed to a monthly credit check at a cost of $19.95 per month. You can’t figure out how this company got your information but you call to cancel and then you find out that when you attempted to get a payday loan they automatically signed you up for this monthly subscription. Naturally you cancel it and promise yourself to be more vigilant and read everything on the page the next time.

With cyber crime becoming so popular you must exercise great caution when dealing with anyone. If anyone calls you and offers you a payday loan, you should be very skeptical. Solicitation over the phone is not likely, so if anyone ever calls you and offers you a payday loan, hang up. Any payday loan which requests you to pay money up front is also not legitimate. You need a loan, why would you be paying out of pocket to get a loan. The likelihood is that you are dealing with scam artists. Before you give out your banking information, do your due diligence. Find out through the Better Business Bureau if they are a legitimate payday loan company.

Always be on the lookout for payday loan scams, if you need fast cash. It’s important to understand that the internet has bred a whole new type of thief, the cyber thief. These criminals are heartless and relentless. Once they have your information they will hound you and chase you down with one illegitimate scheme after another. So be very careful about to whom you give you personal information. Check out companies before you agree to do business with them. Almost anyone can upload a web page that resembles a payday loan company. It’s up to the people searching for help to get it from sources that are genuine.

Category: Payday Loan

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