Payday cash advance consumers are warned against the overwhelming number of online loan scams. Many innocent consumers have unknowingly fallen into the trap of these scammers. In fact a website, Scammer-Alert.com, was created to increase the awareness of payday cash advance consumers. There are increasing numbers of payday cash advance companies today that are trying to rip off the hard-earned money of people living from paycheck to paycheck by offering instant cash loans. Unfortunately, many borrowers have fallen into their trap and found themselves drowned in an endless cycle of debt.
Due to the economic recession that our country is still facing today, many people need some extra cash to pay for car and house repairs, school supplies, tuition fees, or any unforeseen or unexpected expense. This is why offers of payday cash advance lenders has gained tremendous popularity. Many consumers need instant cash and these loans offer such services.
As the demand for stress and hassle free loans increases, so does the number of lenders who take advantage of vulnerable consumers. Consumers are warned to take the necessary precautions in order to determine scams from genuine lenders of payday cash advances. Since the internet is a viable venue for scammers, consumers must be aware of their common strategies. However, most loan scams are so appealing that it is difficult to identify them.
Online payday cash advances are more prone to scams compared to storefront lenders. By being online, they can hide their true identity. Websites can be easily set up in a few hours and can be immediately taken down in a few minutes. The operational cost is also very cheap because anyone can set up an internet website account and email service.
Consumers are also warned against scammers that set up “phishing” sites. Phishing sites are designed to collect personal information from customers, such as your name, social security number, phone number, and bank account numbers. This information will be used by scammers to get credit cards, drain your bank accounts or may even sell your information. Often, they sell the information they gather to people who defraud the government and avoid taxes or even to illegal immigrants in order to obtain employment.
Scammers may also overcharge you for fees due for short payment terms and with very high interest rates. Many times, consumers who become their victims are unable to pay on time and are forced to request extensions at additional fees. Some may even charge extremely high late fees, even if you are 1 day late you will be asked to pay a few hundred dollars in fees.
Telephone scams are also rampant. The government has been working hard to regulate telemarketing to prevent scams. However, telephone scams continue to defraud thousands of consumers every year.
Knowing how to prevent payday cash advance scams is important to protect your welfare and your hard-earned money.