How To Choose A Reliable Creditor In Online loans
According to the Federal Trade Commission, the authority charged with protecting consumers in the country, there are several instances when lenders of payday loans were sued after violating federal laws with various degree of severity. For example, they explicitly lied or provided misleading information with regard to the cost of the loan (for instance, charging multiple finance fees instead of one), required their clients to permit the lenders to automatically retrieve money from their bank accounts, or threatened to sue or have the borrowers arrested for delayed payments.
Recommendations For Choosing A Trustable Payday Lender
The Federal Trade Commission has a few recommendations to follow when choosing a company for a payday loan:
- Be very cautious whenever providing your identifying and financial information online. Even if you do not end up clicking the submit button, all the information you type in the boxes of an online form can be collected. This can later be sold to third parties by the specific website you interacted with, enabling unsolicited marketing attempts targeting you, leaked financial and credit history information, or even identity theft.
- Be informed that that there are websites specialized in collecting your financial information and sharing it (or selling it) without your knowledge to lenders who may or may not offer you a loan – these sites are called loan aggregators. Typical information required is: name, date of birth, phone number, address, social security number, annual income, bank or credit card account number, etc (in other words, pretty much the same information a lender would request). Avoid such sites and navigate directly to the webpages of the lenders themselves.
- Most of the people accessing a payday loan understand that this type of loan comes with higher interest. However, always do your best to try to locate the information describing the exact conditions of the credit, namely the annual percentage rate, the finance charge, the repayment date, etc. If some of these costs are exaggerated, or much of the information is concealed, this should serve as a red flag. If important information is partially missing, feel free to pay a visit to the physical address of the lender.
- Learn about the ranking and reputation of credit providers (there are multiple places online where one can do this, ranging from more formal places where one can confirm accreditation, to informal platforms where simple users share their experience (e.g. Better Business Bureau, Yelp, etc.).
Beware of payday loan companies that advertise unrealistic luring promises, such as lending money without any ID verification or without any financial information requested. Given that they are not honest with you with regard to these basic details, they might be lying about other aspects as well.