Online Payday Loan Scams
Online Payday Loan Scams
Center for Responsible Lending and the Pew Charitable Trusts have been avid in fighting against abusive and illegal activities done by payday loan stores across various counties. Payday lenders in California who have been charging high-cost loans at storefronts for years are now going to be subject to new laws from the state’s financial regulators.
According to the financial regulators of California, they found out though online complaints that several of the payday lenders did not have legal rights or license to be operative in the area. Furthermore, these stores and lenders do not follow consumer-protection laws and other regulations.
Through a website, the California Department of Corporations has discovered that many short-term lenders that are operative online do not show their annual percentage rate figures. This APR, the standard for measuring the true cost of loans is made mandatory by both federal and state law.
In payday loans, borrowers tend to pay their debts through their paycheck or if that would not suffice the whole debt then they has to take out another payday loan from a different lender. This is what consumers would often call a payday loan trap because once they get a payday loan debt it is not very easy to get rid of it.
California’s law has placed a limit of a payday loan in a day. The largest amount that can be borrowed is $300 with a 15% interest. It operates in an annual percent rage that is 13 times more expensive than credit cards. Online payday lenders would ask their borrowers to share personal data that include their bank account information. There are some lenders who would deposit money on the accounts before the customers get a loan and then they take off money from the bank for refund. This has led some customers to close their bank accounts and even take legal actions through court.
Related posts on loans for people with bad credit:
- Payday Loan Scams Help Online Scammers advertising loans with advance fees seek out people who are in great need of money. They promote their products and services in local print materials and legit looking websites online. They entice people to grab their offer by using…...
- Payday Loan Scams Revealed Payday Loan Scams Revealed Credit.com has always been avid in warning people about fraud and phony payday loans and finally their efforts have been fruitful. The Federal Trade Commission has been successful in their court hearing last February in closing a $5…...
- Oklahoma’s Payday Loan Laws are Tolerant Says Survey Oklahoma’s Payday Loan Laws are Tolerant Says Survey According to the recent national survey the small-loan laws in Oklahoma are charging the highest interest rates in the history of payday loaning in the United States today. A research conducted by the Pew Charitable…...
- Bill Proposed that Would Increase Limit on Payday Loans Bill Proposed that Would Increase Limit on Payday Loans Supporters of payday lenders are advising the state Legislature to increase the restriction on the high-interest loans, allowing distressed borrowers to be in much deeper debt. It is not a good idea and…...
- Kansas vs. Payday Loan Collector Agency Kansas vs. Payday Loan Collector Agency The Attorney General of the State of Kansas has recently announced that he has filed a lawsuit for consumer-protection against a debt collection agency that is based in the state. The said agency was based…...
Filed under: payday loans
Like this post? Subscribe to my RSS feed and get loads more!