Payday Loans

Two Reasons Why You Should Avoid Online Cash Advance Loans

There are several reasons why you must avoid online cash advance loans at all cost. Internet based cash advances also carry the same set of risk factors as any other payday loan does. What is worse, there are many additional risk factors that you may have to face in this situation. Following is a brief rundown on it.

Internet Based Payday Lenders Often Do Not Have A Physical Address

Internet based payday loan companies usually do not have a physical address. Even if you come across a website that claims to have a physical address, it is very much likely that the address is a fake one. Even if the address is correct and genuine, it is very much likely that their office is not located in your state. Such lenders are often very difficult to catch by law. If you must borrow online cash advance loans, you are advised to sign up with only those lenders that have a local office, where you can personally contact them. Internet based lenders are worst violators of the laws. There are many payday loan companies that are issuing cash advances to consumers even in those states, where payday lending has been officially declared as illegal. Such companies have the excuse that the state laws do not apply to them because their offices are not located in that state. This is a lame excuse because as per the laws, lenders must follow the rules of those states where the borrowers reside. Just contact the FTC about it or any other consumers complaint forum and you will see it yourself that a large number of consumers have filed cases against online payday loan lenders and that the law authorities seem to be handicapped in catching those law violators.

The Lenders Are Very Aggressive In Their Collection Practices

Another problem with online cash advance loans is that lenders that issue these loans are usually extremely aggressive in their collection practice. They do not leave any chance to harass borrowers and force them to pay an extremely high amount of money as compared to the principal amount that was initially borrowed. The reason behind these unfair and aggressive collection practices is that the laws are still not strict enough to catch payday lenders that run their business through Internet.

Last, but not the least, even if you are lucky enough to find a legal, genuine, and humble Internet based payday loan company, you are still advised to avoid online cash advance loans because it is extremely costly. Does it make sense to repay $750 for $500 of loan taken for two weeks? No, it doesn’t. So, look out for better alternatives; trust me, there are many.

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Posted in Payday Loans, Risk Factors | 1 Comment »

One Response to “Two Reasons Why You Should Avoid Online Cash Advance Loans”

  1. Robin says:

    Very impressive points. Internet based cash advance loans must be avoided. The article provides some very meaningful facts regarding such loans. It is very complicated to catch any internet based loan providing companies since these companies never provide their actual physical address. These companies generally do not follow the rules of your state because you can not locate them. If you are in need of money, there are a lot of other options available for you; you can get some money from your relatives, friends or even your employer. You do not have any other option and you have to go with internet based cash advance providing companies then try to sign up with only those companies having a local office, where you can contact them personally. Internet based companies are providing their services even in the state where pay day lending is completely banned because they do not come under the laws of particular state. The lenders providing such services are very much known for their aggressive nature in collection of their money back. They harass the consumers and charge a very high amount of interest that’s why it is always recommended not to go with internet based companies.

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