Category: 

How Do I Avoid Payday Loan Scams?

Article Details
  • Written By: L. Dunne
  • Edited By: Susan Barwick
  • Last Modified Date: 26 November 2016
  • Copyright Protected:
    2003-2016
    Conjecture Corporation
  • Print this Article
Free Widgets for your Site/Blog
Helium is the only element that was discovered in space before it was found on Earth.  more...

December 10 ,  1948 :  The UN adopted the Universal Declaration on Human Rights.  more...

Payday loan scams are a reality due to the large demand for and ease of obtaining of Internet payday loans. In order to avoid these scams, research can ensure that the company you are selecting for your cash advance is reputable. Review current paycheck loan rules and cash advance laws, and do not enter into unsolicited agreements, as these are typically scams. Never pay up front for a loan, and be careful about giving out bank account information.

Use caution when entering into agreements on the internet. It is simple to make a website that looks secure and professional. The key is to ensure that the company actually is reputable and in good standing. Check with the Better Business Bureau and ask friends and family members for information. Typically, payday loan companies that also have physical buildings are a solid choice. Many payday loan choices are hurried, due to an immediate need for cash, but avoiding payday loan scams is worth the extra research time.

Laws in the U.S. regarding cash advances and payday loans have been changing. Review the laws regarding what kind of interest can be charged and the consequences of being unable to repay the company. Read any contracts and agreements carefully before signing and accepting funds. Some loan companies have an interest rate over 500%, so read the fine print and all stipulations before accepting the offer.

Ad

Generally, as you start filling out online applications for a payday loan, your information is immediately sold to other businesses. You will begin receiving emails, text messages, and phone calls from numerous companies offering you payday loans. Usually, these soliciting tactics include "too good to be true" offers which are usually a sign of payday loan scams. If your email account has flagged the offer as spam, it probably is.

Of course, you will need to repay the loan with the interest and any fees assessed. You should not, however, pay anything up front for a loan. Companies that request funds prior to dispersing a loan are most likely payday loan scams. The company may take your money and never disperse any funds to you.

Many companies insist on a bank account number and routing number in order to electronically transfer the money directly to you. These are not always payday loan scams, but be a little wary of these companies, as they will also collect funds electronically from you. When you sign the loan agreement, you allow the repayment to be taken out every month or on a specified day. Remember, the company is able to take any amount they choose once they have that information.

Ad

You might also Like

Recommended

Discuss this Article

anon993477
Post 3

I applied for a payday loan back in 2010. I was unable to comply to the terms so I told them to cancel the request. No money ever was deposited into my account. However, the company tried to take $30.00 out of the account the following year. I have been harassed for five years by litigators saying there are two counts of fraud against me. One for breach of contract and the other because I stopped payment on the withdrawal they tried to take. How can I make this harassment stop? I told them to serve the papers so I can have my day in court. I have not received any written correspondence regarding this issue. Any ideas?

Talentryto
Post 2

Those are two good points Rundocuri. People who pursue getting payday advance loans should also look at the situation as temporary and a way to get back on their feed. If people take on several of these types of loans from different lending agencies, they are more likely to fall into scams.

Rundocuri
Post 1

I think the bottom line is that if you are going to get a payday loan, go through a reputable company. Also, if the terms on a payday cash loan sounds too good to be true, it probably is.

Post your comments

Post Anonymously

Login

username
password
forgot password?

Register

username
password
confirm
email