Payday Loans Scam

In a recent article by Jay Kohn of Q2 News he talks with the President of the Better Business Bureau about payday loans scam as well as offline scams that seem to be on the rise.

 

 

“BILLINGS – From Yellow Page scams to bogus payday loans, those who track the latest frauds making the rounds on the internet are keeping busy trying to alert consumers about those out to rip you off.

Jan Quintrall, President and CEO with the Better Business Bureau, says internet Payday Loan companies are among the latest scams to be on the lookout for.

“These companies ask for your account number so they can transfer money to you,” explains Quintrall. “Problem is, then they start taking money out at really bizarre intervals, and they usually take more than they ever should in the first place.” Quintrall said.” Read more.

The nations largest bank, Bank of America, has put a stop to all foreclosures nationwide as they probe into how documents have been prepared to support evictions. This action comes as anger grows at how these documents have been pushed through the courts, not necessarily complying with state laws.

The nationwide moratorium on foreclosures will also put a freeze on and properties listed for sale at this time. This halting of foreclosure proceedings has directly impacted the payday loan industry as they have been providing a growing number of loans to cover deposits being made on rental accommodation for evicted families.

PNC Financial Services Group Inc. has also put a hold on foreclosure proceedings in 23 states for a period of two weeks as they review their filings. GMAC’s mortgage division and JP Morgan Chase have also announced similar  moves as they review their documents.

Most of the big banks are under political pressure to examine foreclosure documentation problems as rumors surface about most documents being signed without ever being reviewed.

The FTC has fined an internet payday loan referral site for charging people $54.95 for a debit card. These debit cards have no money in their account but funds can be added should you have any extra after being unknowingly charged this fee. It seems that this payday loan referral site had arranged to have a box pre-checked on the loan application that authorized the charge for the debit card.

According to the FTC complaint, Swish Marketing Inc., and its three officers, Mark Benning, Matthew Patterson, and Jason Strober, operated websites advertising short-term, or “payday,” loan matching services. The websites included an online loan application form that tricked consumers into unknowingly ordering a debit card when they applied for a loan online. . On numerous sites, clicking the button for submitting loan applications led to four product offers unrelated to the loan, each with tiny “Yes” and “No” buttons. “No” was pre-clicked for three of them; “Yes” was pre-clicked for a debit card, with fine-print disclosures asserting the consumer’s consent to have their bank account debited. Consumers who simply clicked a prominent “Finish matching me with a payday loan provider!” button were charged for the debit card. Other websites touted the card as a “bonus” and disclosed the fee only in fine print below the submit button. As a result, consumers allegedly were improperly charged up to $54.95 each. In August 2009, the FTC charged these marketers and VirtualWorks LLC, the debit card company that helped them design the online offers, with deceptive business practices. The debit card company paid Swish Marketing up to $15 for each transaction. The debit card company defendants have settled the charges against them.

The settlement order announced today with Jason Strober, the Vice President of Product Development and/or Engineering of Swish Marketing, bars him from misrepresenting material facts about a product or service, such as the cost or the method for charging consumers. He also is permanently prohibited from misrepresenting that a product or service is free or a “bonus” without disclosing all material terms and conditions, and from charging consumers without first disclosing what billing information will be used, the amount to be paid, how and on whose account the payment will be assessed, and all material terms and conditions. The order further requires that transactions be affirmatively authorized by consumers, and that Strober, in marketing financial products or services, monitor his affiliates to ensure compliance with the order. He also is required to provide specific cooperation to the FTC in its ongoing litigation. In addition, the order requires him to pay $850,000.

NOTE: Stipulated final orders are for settlement purposes only and do not constitute an admission by the defendants of a law violation. Stipulated orders have the full force of law when signed by the judge. The Commission issues a complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest.
The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and
unfair business practices and to provide information to help spot, stop, and avoid them. To
file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,800 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics.

I Need a Payday Loan Immediately

If you ever said I need a payday loan immediately, help has never been closer to home. Gone are the days of going to the bank or local pawn shop to get some emergency cash. Today there are many lenders who offer these payday loans online with a quick application process, and money deposited quickly into your bank account. Most online lenders have a loan application on their website and will approve you very quickly – often within minutes. The approval process does not usually include a credit check and is based more on you meeting the loan requirements. These loan requirements are very basic and do vary from lender to lender. In general payday loan or cash advance companies like you to have a monthly income of $800 – $1000, a checking account, and be at least 18 years old. Some online lenders also have a database they use to see if you have defaulted on this type of loan before. Payday loans are also not available in all areas due to local legislation. Some online lenders do have a way to arrange a loan from another area which bypasses any local requirements. If one online lender does not offer loans in you area, just keep looking until you find one that does. A payday loan or cash advance should be used only for emergency short term financing as their rates are much higher than a bank loan. If you find yourself needing the loan for a longer period of time payment plans can be arranged with the lender, however, be sure you are aware of the various charges involved before extending your payday loan. If possible use payday loans for short term financing until you can arrange a bank loan or other financing. If you find yourself saying “I need a payday loan immediately” on a regular basis it is probably advisable to apply for a bank loan and consolidate some of you debts to reduce the amount of interest you are paying. Most banks these day are not interested in lending small amounts of money, but will be interested in helping you pay off debts with high interest such as credit cards and department store financing, which can be in the 20 to 30% interest rate range per year.

No Fax Payday Loans

If you want an easy and convenient way out from your financial emergency, no fax payday loan can provide you a safe solution. If you are suffering from a financial crisis like pending bills, bounced checks, late fee charges, bad credit records – payday loans can become your survivor. This loan gives you instant cash till your next paycheck arrives.

It Is Simple To Qualify For Payday Loan
Must be a U.S. citizen
Must be at least 18 years of age
Must have a regular monthly income of $800 or more
Must have a checking account
Loan Application Process Is Hassle-free

The first step in getting the loan approval is to fill up the application form. The information you need to provide is quite simple. It includes your personal details such as name, age, banking information such as name of the bank, your online checking account number, employment details like name and address of the company you are currently working with. You do not need to fax or print anything. There are no credit checks done. Actually even people with bad credit can apply for payday loan since it is a short term liability for any company. Therefore, the application process is very quick and straightforward.

Loan Agreements – Spend Some Time Before Signing
Please be very careful while reading these documents. Never be in a hurry to sign on the dotted line. Make sure, you have a detailed look at the fine print and do not overlook a single word. Remember, if you ignore this piece of advice, at the time of paying, you may end up calling your financing company repeatedly about their fees if you do not pay enough attention while signing the loan agreement documents.

A Word Of Caution
Only take a cash advance in case of dire emergencies. Make sure to pay back the loan on time to avoid penalties. By not paying the loan on time, you tarnish your credit image in lender’s books. The late payment charges are so high that if you skip the payment and carry it over for 2-3 months your financial situation becomes severe, you may be trapped in the vicious loan debt. So be careful before applying for the quick cash advance.

The no fax payday loan has become so popular because it is really very simple to get the extra cash and that too really fast. Just to give you an idea, you would love to take your wife on a weekend off but you might be a tad bit short on cash. Apply for a payday loan on Thursday and get the cash transferred in your account on Friday, and zip off for a fun filled weekend.

A No Fax Payday Loan is a quick and simple way to deal with your immediate monetary need or expense. You can get up to $1500 cash advance through a payday loan lender. Visit us at Cheap Payday Loan to know more about these loans.
Article Source: http://ezinearticles.com Albertina Belmont