Have you heard the warning against unlicensed payday loan lenders from the California Department of Corporations? It is one more group trying to spread the news that those predatory lenders who do not have legal lending rights in the state will be bad news for you and your finances.
The consumer alert advises potential borrowers of the risks involved with using unlicensed lenders. Included in the warning was a Las Vegas lender named, TIOR Capital and the Folsom-based affiliate, TTG Services. The order from the state sanctions the company and managers from servicing California residents. The state continued to say that a borrower who received a loan from them does not have to comply with any of the loan terms. All the transactions were defined as illegal which makes them null and void.
The problems from these illegal companies continue to create additional headaches with aggressive collections practices. When a company does not practice legal lending, it is usually followed up by illegal collections. The Fair Debt Collections and Practices Act protect U.S. residents from threats and harassment during the collections process. This act will help the consumer deal with the collections agencies in court to get the loans dismissed.
There is an active investigation ongoing to search out any business, collecting or lending, which is affiliated with this Las Vegas payday loan lender company. Consumers are strongly advised to not apply for loans with any lender who does not follow the state guidelines. This is good practice with any type of lender within any state or offshore. You put yourself at risk when you fill out the application forms and send these illegal companies your personal information.
California Department of Corporations will continue the investigation working towards collecting data on how many loans were processed with California residents.
There are good online payday loan lenders out there.
Watch for clear signs to know if you are working with a predatory payday loan lender.
- Phone number on website goes unanswered during business hours.
- Person on other end does not answer questions you may have.
- Pressure to sign for a loan.
- Misleading information.
- The company is willing to loan a lot more than the competition.
Too many customers get further into financial trouble when doing business with an illegal or irresponsible lender. When a short-term payday loan for larger amounts of fast cash are taken out, the financial struggle most often continues. Add the fees to the payoff amount and the balance becomes a a struggle to get paid. Each pay period that goes by without paying it the loan off, the high interest will continue to make the figure grow.
Whenever you use third party money, it should become a budget priority to get it paid if full. Carrying long-term debt may seem like a good idea, but the longer the debt is outstanding, the more expensive it is to pay off. Low or high interest gets applied in the same way.
Spotya! Online Payday Loans Lender work to inform its readers to recognize predatory lending practices. If something seems too good to be true, you may want to spend some time and do a bit more research on the company. Know your state regulations and be a responsible borrower by only dealing with lenders who observe the regulation terms.
