Fraud and Payday Loans

Fraud and payday loans can be a complicated thing. Not knowing enough basic payday loan information can lead to what seems like payday loan fraud. Then there are particular payday loan companies that are only in existence to profit off the fact that you have financial problems and will do anything they can to make your life miserable.

A Case of Mistaken Identity

When getting a payday loan you must realize:

• The loan is short term and may be difficult to pay off by your next paycheck.
• If you are unable to pay off the loan you can extend the length of your loan, for a fee.
• Interest rates can get really high once you start renewing.
• Electronic withdrawal can lead to the payday loan company withdrawing money when you might not expect it.
• If you default on the loan you can pay a lot of nasty fees.

All of these points are common with payday loan and are explained to you. They can seem like a company is trying to steal your money, but if you follow the rules you do not have to worry about it.

Real Payday Loan Fraud

There are companies, however, that are shady and just want your money. The payday loan company you are dealing with may be shady if:

• If you are asked to pay an application fee, an insurance fee or a processing fee in advance.
• Guarantee you will be accepted for a loan even before you apply
• Ask you to wire your money to them, this allows the transfer to be untraceable.
• Their phone number is a per-minute charge 900 number.

You do not want to get anywhere close to a weasel of a company like that.

Additional Resources

• Avoiding Dangerous or ‘Predatory’ Loans
• Payday Loans Gouge Customers