We have all seen the advertisements on television, and in pop-up ads online; "Quick Cash!!!" and "All you need is a job, checking account and a pulse." The pulse part is my added sarcasm. Anyway, there are thousands of Internet payday loan companies to choose from if you are ever in need of extra cash; but is it truly worth the heartache. Let me run the most typical scenario by you, and you will see what I mean. I have done a lot of research on this industry, and I must say, if you are not informed of your state laws, you can be screwed out of your money, and it won't end. Now, back to the most typical scenarios that consumers face when seeking an online loan. First you will be required to fill out an online form, with information such as your employment, employment address and phone number, supervisor, your pay schedule, and if you have direct deposit for your paychecks. Then they will have you submit this form by clicking 'submit'. In a few moments, in some cases longer, you will receive an approval in your email inbox. Within a day or two, sometimes three, you will see that this company deposited the amount requested into your checking account. The first payment on this loan will usually be due within a week or two, depending on the company. However, and this is where it starts to get ugly, monetarily speaking. The first payment due is just the interest and fees. The second payment due is also just for the interest and fees, and on and on it goes. Lets say you applied for three hundred dollars. If you do not completely repay this in the first week, this three hundred dollars can turn into three thousand dollars. How can these loan companies charge so much in interest and fees on such a small loan? Simply put, legally they can not, but most consumers, you and I, are not informed of the laws that govern these online crooks. You see, every state has laws, which differ from state to state, but are similar in that they protect the consumer. These laws control how much you must pay back on a loan and how many times a loan company can allow you to 'roll over' a loan. Also, most Internet payday loan companies are not even licensed to operate in most states, or licensed to collect in those states. Lets say you borrowed that three hundred dollars again, but this time you pay back only what is legally allowed. You would end up paying back about three hundred and sixty dollars. That is a huge difference from the original three thousand dollars. The difference is information. The difference is knowing the laws and consumer protection acts. If you currently have online loans which you are still paying on or gave up paying (defaulting) all together, do not worry. Please check with your state laws regarding online loans. If an online loan company is ripping off your bank account by taking money without authorization, then tell your bank to cease any debits from your account, and report the loan company, immediately to the Attorney General Office of your state, as well as the AGO of the loan companies state. You will be surprised at how many online loan companies are already under investigation for stealing, lying, deceiving consumers and so on. If you can stay away from online loans, then that would be great, but if you must apply for one, get informed. Research to see if the online loan company is licensed to even operate in your state. Also, if you do not pay back what you owe, you can not be arrested, like some collection companies try to threaten consumers with. You also are not committing any white collar crimes, another tactic used to scare people into wiring them money. Most tactics used to collect are illegal. If you are ever contacted by either a loan company or collection company, and they threaten arrest or accuse you of any crimes, they are the ones violating the laws. Please get informed. You are not alone. There is no way that I could cover every negative aspect of Internet loan companies, so please visit this site:
22 comments:
Crafty, but not my type. I hate scam artists- especially those stealing from people who already need to borrow! Thanks for the info!
Christopher Ruddy
Please share the information with as many people that you can, to avoid them from becominf victims of this money trap.
I have fallen victim to there harrassment they keep calling my work now and telling me to have my retained attorney and now I do not know what to say to them or what to do they are verbally putting me down as if I am some horrible person. I have a family to take care of and I would never commit something so horrible as they are telling me I have done. Can you help me?
Jacquie: What they are doing is illegal under federal law. Please join the forum which I included a link for in this story. Fight back, and become the one with the power.
Mr. Lemons, please guide me, I don't know where to turn first.
I've been duped!
I initially took out a payday loan with FTR processing, full intention of paying it back. However, I soon became the victem of some type of id theft that made my bank account be seriously overdrawn. I had to close this account and have the bank open an investigation. I opened a new account somewhere else. Two weeks after, I received a phone call from 800-859-6439; Mr. Reagan at Northbay Ventures demanding I pay them or by 4 pm or they would proceed with my case. Mr. Reagan had specifically said that he had been in jail for the same thing and it is not a pretty. Thing. Also said since I was commiting check fraud and something about crossing state laws. He also demanded to speak with my supervisor at work. (which did not happen) I ended up being so scared I sent him 600 & he said I owed him 600 more dollars. If I did not pay the remainder, his exact words were " if you don't pay me the remainder,hell has no fury.." The phone number that Mr regan is from (he said Northbay Ventures) comes back in the better buissness bereau as 1)Zurich Ventures 2)XPRESSCASH 3)PD6 Ventures. All three. Who do I file a complaint on? FTR Processing, or the three listed above, they all are located in different states. Who do I send a cease letter to. I don't have an address for the location Mr. Regan was at. Please help, I'm very stressed as my next payment is supposed to be this friday. What steps do I take. There is a lot of info out on this site, but because it appears I'm dealing with a company that is disguising themselves, I don't know what steps & who to go to first are. Please help
Samantha, your first step is to click on the "Bass and Associates" link on the side of this page and read the story. After you read the story, you will need to contact the Attorney General in your state, and file a complaint against this Mr. Regan, which most likely an alias name. The threats of arrest are extremely illega under federal law, however, most collectors hope that the people they call are not informed. Please come back for any questions that you have, I'll be here.
i am currrently being harrassed today by this company and it is freaking me out!! She told me I need to get a babysitter for my child, because I am going to be arrested.
Anonymous: First of all, the threat of arrest is illegal under federal laws, and the people harassing you are hoping that you did not know that. Do not pay them any money. You need to file a complaint with your attorney Generals Office, online or by phone, but don't ignore this situation, get right on it, and please let me know if I can help.
I've learned about this sort of stuff through a kid I've been mentoring. It is scary that people get so desperate that they are tempted by these people and that they don't know how to see through the 'too good to be true' BS. It's scarier still that people can be so venal that they prey on the poor and uneducated and desperate.
While we need short term fixes and help for those who've gotten caught in these nasty traps, we also need to question what society is doing wrong that allows people to get through school (or drop out) without learning to think and to understand finances better. And we need to understand how people grow up to be so coldly uncaring of the pain they cause people.
I'm also disturbed that mainstream business are moving in this direction. Formerly respectable banks seem to be watching these sharks for ways to make more money off of their customers bank accounts and credit cards. Cell phone companies are clearly watching all this to devise ways to suck people into spending money without even knowing it.
Thanks for spelling this out for folks.
I have just been victim of the same thing with that company I said that I was not sending anything until I got something in writing cause I dont know if they are trying to get me. They said that was fine but I would be in jail before I recieved the papers these people are crazy
Anonymous: You need to file a report on them for illegal tactics. Please file an online complaint with your Attorney General.
HELP, I too have fallen for the trap of internet loans and I don't know what to do. I've had several and paid them but there is one I know I paid off but I have no proof because I closed my original bank account that it was deposited into and paid back. I received court papers regarding Apple Cash suing me over it and I thought it was fake but I took a look at my credit report and the judgement is on there what do I do?
I also am getting these calls to call or have my retained attorney call. I had my prior checking account closed by the bank because I could not keep up with the overdrafts. I am now filing bankrupcy, so I called these people back and they are telling me that I "stole" federal regulated funds with no intention of paying them back. That they are notifying my state and I will be prosecuted for the same. She hung up on me after ranting and raving. The company she told me was "freedom federal bank/SJ Marketing Group". I have paid back some of these, one at a time, and the legal ones the first loan paid back right away. These other loans are illegal in my state, and they are sending me these threats.
Calls to mobile phones or other wireless devices/internet calling may be charged at higher rates than calls to traditional landline phones. Additional fees and taxes may apply. All rates, promotional or otherwise, are subject to change at any time without notice. Call times are billed in one-minute increments.
My complaint: Zurich Ventures.
I've never had a loan with them and they've managed to pull my credit report, find out where I work and call harassing wanting to speak to my boss about paying a $600 loan that I never took out.
Can't get anywhere with them. Yolanda is so rude and cursing the staff on the phone before she even spoke with me. She called multiple times during the day upsetting the entire staff.
I'm lucky I still have a job.
After that I filed an FTC complaint. Don't know if it will do any good. Next stop is to file with the Attorney General.
cash advances and payday loans come in handy when emergencies pop up, and one is a little short on cash. whether its for a kids birthday, the cable bill, or gas in the car; the fact is that everyone has hard spots. millions of people have taken advantage of this hassle free service
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