Learning to avoid payday loan scams
Internet PayDay loan scams are a very serious problem. The amount of scam artists selling cash advance loans on the Internet is increasing daily. As you may already know Scammer-Alert.com is dedicated to brining awareness to these Internet scams. As usual, we have done extensive research on virtually every payday loan company we could find on the Internet. I'm exposing the truth behind the fast cash loan, and providing you with a short review of the most honest companies out there. There are numerous payday loan companies looking to rip off hard working people just like you and me, and without the right information you could easily find yourself trapped in an endless cycle of payments.
Every now and then all of us need some extra money to pay for car repairs, school supplies or any number of unforeseen expenses. It happens to everyone. I hope to provide you with the knowledge and expertise to spot the scammers and find the PayDay loan company that suits your needs, not theirs.
So why are there so many Payday Loan scams on the Internet?
The internet is an attractive venue for scam artists to search for honest people looking for cash loans. The most appealing is the fact that you never see them. Doing business on the Internet is very attractive to scam artists because it is very easy for them to hide their true identity. Companies using the Internet can create virtually any image they want you to see. Just because a company has a nice looking web site doesn't mean they are an honest group of people. Web sites can be set up in a matter of hours, and can be taken down in just a few minutes. The Internet makes it simple to close up shop and disappear almost instantly. It is also very cheap, for a just a few dollars almost anyone can get an internet web site hosting account and email service.
Some of these scam artists are so good they can even scam other companies out of these services, thus making it 100% free for them! The Internet also provides a great pool of new people to rip off. Scam artists know that in order for them to keep making money they have to keep finding new victims. Since the Internet is world wide it makes a perfect place to find new people to exploit and steal from.
Many honest, hard working people looking for payday loans are unaware of scams and
the unethical tactics they use to "capture new customers." Most the time these sites were set up as "phishing" sites. Phishing sites are designed to collect personal information on you such as your name, social security number, phone number, and bank account numbers, etc.. This information is then used to get credit cards, drain your bank accounts, or worse your information is sold. Sometimes your identity is sold to the highest bidder, who uses it to defraud the government, avoid taxes, or even sold to illegal immigrants so they can gain employment.
I did find several sites that were not designed to collect information, however they were still usually rip offs, with very short payment terms, and high interest rates. They were more than happy to loan you money, however 9 out of 10 times the loan time was very short, which means you constantly had to request extensions which of course comes with a fee. Also the interest rates for these loans were sometimes as high as 350%! That means if I borrowed $1000, they expected me to pay back as much as $4500!
Now I don't know about you, but that sounds like highway robbery to me. Even worse these companies had extremely high late fees, in some cases if you were just 1 day late you could expect to pay a few hundred dollars in fees.
Here's what I found out about cash advances
Over the last 6 months I have signed up for payday loans from over 70 different companies on the Internet. I contacted their customer service departments, and took advantage of every service they offered. I also did extensive research into the back grounds each of them. While some of these companies provided an excellent service, the large majority were complete and total frauds.
After completing my exhaustive research I did manage to find a handful good companies that are honest and up front about how they loan money. All of my recommended lenders don't require you to fax any information into them, and I had the cash direct deposited in my bank account within 1 business day. Each of them had a large, helpful, and courteous staff who answered my questions. Most important of all they had a toll free number I could call at any time. I was shocked at what I found while investigating the multitude of web sites out there, but I expect more and more of these scam artists in the future. As always I will keep you updated on my findings.
Category: Payday loans