High interest payday loans make a small loan more expensive when not paid off on the original due date. Most direct payday loans are made for a few hundred dollars at a time. It’s quick cash to help budgets get by till the next paycheck.
Pro Player Funding and NFL quarterback Vince young are on opposing teams. The funding company has sued the football player for repayment on a payday loan valued at almost $2 million. The player claims that the loan was taken out by someone other than by himself. He has blamed his former business manager and agent for taking the loan out fraudulently. He claims he did not receive the money and wants the Pro Player lawsuit to be thrown out with unspecified damages to be paid. Young is fighting back against the lender.
This loan came during a time when young was unemployed. Now that he is in training and focusing on a career, the lawsuit could have lasting implications for the future. One of the ball player’s accounts has been frozen; collectors even went to a training camp where Young was competing for a spot on a team. Allegations are being thrown at each side. Young’s lawsuit allegedly is the first to confront the Pro Player Funding who loaned money out to players during the football lockout.
With the loan amount of $2 million, there is going to be a battle between the two opposing sides. A payday loan of almost $2 million carrying a 24% interest, that’s a chunk of some serious change!
Most payday loans given online or at storefronts do carry high interest but for loan amounts around the $200 mark. Regular folks getting regular amounts of much needed cash. Pro Player Funding is an exception to the rule and gears their money to those who make extreme salaries.
A payday loan amount should just enough to get you by to your next paycheck.
There are some companies who will offer you more than the average loan. If you live in a state which has regulations, these loans are not a good choice. If you live in a state with no state regulations, large payday loan amounts are still not a good idea unless you can promise yourself that a fast payoff is inevitable. When you can’t afford to pay back the loan according to the terms and the loan carries a rate of high interest, your finances will be burdened with unnecessary debt. Understand the low cost payday loan before you accept the money. Work with your lender to verify that all information is correct. There are responsibilities of the lender to help keep fraud away from the loaning industry.
As with the above case, fraud has been named a factor in the lawsuit. There are people who do try to get loans attached to accounts not their own. There are borrowers who falsify information on their application in fear of being rejected. The financial industry needs to make decisions based on facts to help keep fraud away. Work with the lenders to help keep your account safe and the industry fraud free.
