The payday loan online story is one similar to million others. A woman had just come out of major surgery and was looking for some help with payments. She went looking online and found an online payday loan company who offered loans in all 50 states. How many of you would have stopped looking at that particular website right then and there? How much do you know about the online payday loan regulations to know that no company is legally allowed to loan in all 50 states? Never mind the fact, the woman resides in Virginia where payday loans are banned.
Test your payday loan online knowledge.
Let’s keep the story going and see if you can find any more red flags with this company. So far we know that the woman was from Virginia where payday loans are against state regulations, but she found a site online which offered loans in all 50 states.
She filled out her information in the box provided and sent it in to the company. She never did get a loan, but her story doesn’t end there. Just a few short weeks later, she started receiving collection phone calls from people with heavy foreign accents. These collectors were attempting to collect on a loan which she had never taken out. How could they have gotten her information? Why were these collectors threatening her as persuasion tactics for her to pay on a loan she never received?
This woman was smart. She knew not to fall to these collectors threats and instead reported them and the payday loan website to the Federal Trade Commission.
Let’s define the bad.
The company who offers online payday loans to anyone who applies is not a lender following best practices. There are 13 states which presently ban payday loan lenders from providing services to their residents. These state governments believe it is in the best interest to keep their residents from spiraling out of debt by using direct payday loans to help with unexpected costs. There is also the qualification process which should prevent loaning to those who do not qualify for the short-term loans.
Entering your personal information into a website which does not follow best lending practices will put you into further at risk with fraudulent activity. Your name, contact information and knowing you had possibly taken out a payday loan online will open you up to attack from scams.
You cannot be too careful with your personal information. The need for money is something a predator will take advantage of. When looking online for a lender, know that you will find many who work within all regulations, but you will need to filter out the bad apples. Talk to friends or neighbors to see if they can recommend a company or steer you away from one with poor practices.
Spotya! Online Payday Loans is a responsible lender offering best practices to all customers who live in areas where online payday loans are allowed. Whether you obtain a loan from the company or not, Spotya.com will continue trying to educate people on the do’s and don’ts of the payday loan industry.
