Posts Tagged ‘avoid payday loan scams’

How To Protect Yourself From Payday Loan Scams?

Despite the very fact that almost every state now are coming with stricter laws to regulate payday lending programs, the number of payday loan scams is still on the rise. Therefore, if you are considering obtaining a short-term pay day cash advance, you have to be very careful while you choose your lender. Though these loans do not make the best financial sense, if you are confident that there are no better alternatives available out there and that you must take this loan to get that extra cash you urgently need to handle a temporary financial emergency, you must take several things into consideration before you sign up for any such program. Following is a brief rundown on five most important points that you must keep in mind in order to protect yourself from being scammed by a payday lending scammer.

Look For The CFSA Seal

When it comes to protecting yourself against payday loan scams, the first thing you have to do is to look for the CFSA seal on the official website of the payday loan company in question. CFSA stands for Community Financial Services Association, which is only organzation in the United States of America that is dedicated solely to promote the best practices in the payday lending industry. The CFSA seal on a payday lender’s website is an indication that the lender abides by the state and federal laws and that they are duly licensed to issue payday loans to you. You are strongly recommended never to borrow loans from a lending company that does not have the CFSA seal on its website.

Look For A Physical Address Of The Company

You have to be extra careful if you are considering borrowing from a lender that does not have an office in your state. Internet-based lenders are more likely to scam you. Therefore, in order to protect yourself against payday loan scams, you must also look out for a physical address of the lending company on their website. If the lender does not disclose where its main office is located at, it is a clear indication that they are not legitimate ones, and so, you must avoid them at all cost. A payday loan company that is duly licensed is abiding by all the laws will never try to hide their contact information. In fact, even if there is a physical address given out there, you need to make sure that it is not a fake address. A thorough research and background check is very important. Once you fall prey to such scamming artists, they are very much likely to damage your financial life badly by getting you trapped into a vicious cycle of debt. If you must borrow a payday loan, it is always better to borrow from a local payday loan store than from an Internet-based company.

Is Payday Lending Banned In A State And An Internet-Based Lender Still Is Offering Loans To Consumers Residing In Those States?

Another form of payday loan scams is where a lender seems to run a legitimate business and they even have a physical address of their office, which is located in a state where payday lending is legal, but they also offer payday loans to consumers residing in other states where payday lending has been banned. It is very important for you to understand that regardless of where the office of a lender is located at, they must follow the laws of the state where the consumer resides. It means even if they have their offices in a state where it is legal to run a payday lending business, they cannot issue loans to consumers residing in other states (such as Georgia), where payday lending is strictly prohibited. Therefore, before you sign up for a short-term cash advance program, you are also advised to look into this aspect as well.

Check The Reputation Of The Lender

Last, but not the least, in order to ensure that you are not being trapped by payday loan scams, you must also do a thorough background check of the lending company. An easy way to do this is to check if they have membership to organizations like the BBB (Better Business Bureau). Though it is not legally mandatory for payday loan companies to become member of the BBB, if they do get the membership, it is a strong indication that they are serious lenders and are not involved in unfair or illegal practices. The Better Business Bureau keeps record of all its member business. You can visit the official website of the BBB and access the past records of the lender in question. If you find that there have been plenty of consumer complaints against a particular lender, you should take it as a huge red flag.

Is The Loan Application Page Secure?

Last, but not the least, in order to avoid payday loan scams, you must also check if the loan application page on the lender’s website is a secure one. It is very important for you to keep in mind that the URL of a secure webpage always starts with ‘https’; if the URL begins with http (without ‘s’), it means it is not secure. Alternatively, you can also check whether the page is secure or not by looking for a padlock in the bottom right-hand corner of your window.

It is also important to note that a reputable and legitimate payday lender will never ask you to pay a fee just to apply for a loan (loan application fee). Therefore, you must also avoid all those lenders that charge an application fee (no matter how small it is). Overall, if you do a thorough research beforehand on the basis of the five factors that have been discussed above, you will definitely be able to ensure optimum protection against payday loan scams.


Custom Search
Bankruptcy

Basic Things You Must Know About Bankruptcy Dismissal

When you file a petition for bankruptcy and the court rejects your petition on certain grounds, it is legally termed as bankruptcy dismissal. Dismissal means your case is officially closed and that the court will make no further rulings on your case. Some of the most common reasons why a petition is...

Bankruptcy
Credit Repair

Building Credit With No Credit

When it comes to building credit with no credit, there are several online canadian pharmacy factors that you need to take into account. Just because you do not have any credit history at present, it does not mean you will never have one. No one is born with a readymade credit history. You have to gi...

Credit Repair

A Loan To Defeat All Loans Debt Relief Loan
Payday loans fax-free payday loans and instant online payday loans are everywhere be it on the Internet newspapers or television. Today when the economy is in turmoil these loans look like the saving gra... Read more

Tips On How To Consolidate Payday Loan Debt
You may need to consolidate payday loan debt when you are caught in the middle of a financial crisis arising out of your inability to repay multiple loans. Debt consolidation loan allows you to consolidate all... Read more

Do Not Put Up With Debt Collectors Harassment
There was an emergency and the need arose to take a payday loan. It seemed to be the fastest and the best option available then. However now the debt collectors harassment is horrendous. The fact that using t... Read more

Consolidate Payday Advances To Save Yourself
Payday advances are loans taken against a persons paycheck. They have a way of digging into your paycheck month after month. They usually have exorbitant interest rates though the sites offering the services... Read more

Can I Consolidate Payday Loans
Can I consolidate payday loans is a question you are sure to ask yourself when faced with a trying financial situation. When payment of loans becomes difficult it is possible to consolidate and replace many... Read more

What are the pros and cons of debt consolidation?