Posts Tagged ‘what are Payday Loans With No Lenders’

3 Crucial Things You Must Know About Payday Loans With No Lenders

If you are searching for payday lending programs on Internet, you are very much likely to come across a very common term again and again – payday loans with no lenders. In the first instance, it looks like a financing program that allows you to borrow money without having to deal with any lender. Such Internet-based loan programs claim to offer you a very simple process to borrow money that includes submitting a 2-minute application form, getting instant approval, getting the money directly transferred to your bank account and getting the money (plus interest and other charges) directly deducted from your bank account on the scheduled due date. So, overall, it looks like a completely hassle-free option to borrow instant money. But, this is not all true. There are several serious negative aspects associated with these loans that you must be well aware of. Following is a brief rundown on it.

Internet-Based Lenders Are Not Conventional Ones, But They Are Still Lenders

The first thing that is very important for you to understand about payday loans with no lenders is that they are generally offered by those payday loan companies that operate their business through Internet and do not have their offices located in your state. So far, they are right when they say that you do not have to deal with the actual lender. But, you are still obligated to pay this money back on the set due date as specified under the loan contract that you sign. Not having to deal with the lender does not give you any flexibility in your repayment obligations. If you do not pay in time, certain penalty charges apply, if you do not pay at all, certain collection activities take place.

It Is Illegal For Internet-Based Payday Lenders To Issue Loans To Those Residing In The States Where Payday Lending Is Banned

Online payday loan companies that term their

payday lending programs as ‘payday loans with no lenders’ often issue loans to even those consumers who are a resident members of those states that have already legally banned this form of lending. As per these lenders, there is nothing illegal with it because they do not have their offices located in your state, and so, the laws of your state of not apply to them. Such logics make no sense because as a mater of fact, all lenders regardless of which part of the world they have their offices located at must follow the laws of the state where the borrowers reside. Therefore, if you are living in a state like Georgia and you come across an online payday lender who is willing to issue you a cash advance loan, you should never go for it.

Failure To Make Timely Repayment Attracts Collection Calls

As mentioned before, lenders that term their lending offers as ‘payday loans with no lenders’ might be running their business through Internet and do not have a physicals presence in your state, you are still obligated to make the repayment in time. If you fail to do so, they will launch collection activities against you, which usually mean getting harassing collection calls. In fact, you may even be surprised to see someone coming to your home and inquiring about the repayment of the loans you have borrowed. They are debt collection agents. In general, when an Internet-based payday lender fails to collect the debt, they transfer your loan account to a local collection agency based in your city.

Overall, you should never get confused with the various attractive terms that payday loan companies use to sell their lending programs. No mater how lucrative an option payday loans with no lenders look like, they are still a form of payday lending and are extremely risky and costly.

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