Tips To Avoid Payday Loan Scams

Updated on September 19, 2017 in Tips
0 on October 21, 2015

When you are in need of some cash urgently, most people tend to get a payday loan. You may have an emergency that would require cash and cash advance will more likely help you. Well, this money will come in handy at the time, however you may find yourself in an unbearable position when it comes to paying back as some payday loan companies often charge people huge fees irrespective of the amount borrowed. The average usage rate nationally for payday loans is estimated to be 5.5 percent and in some states like Oklahoma the rate jumps to 13 percent, making it the highest in America, according to Pew Charitable Trusts.

Due to the rising cases of Payday loan scams, the Better Business Bureau of Central Oklahoma is offering tips for Oklahoma residents on how to avoid scams. This tips can also be used to non-Oklahomans.

According to Kitt Letcher, BBB president and CEO, “It’s prudent to consider any risk associated with a payday loan before agreeing to anything”. Well, this is quite true and whenever one offers you payday loan ensure that you know about the hidden charges and fines before accept it. If you are not careful then you will have yourself to blame come pay day. Some of the tips to avoid payday loan scams include:

Try and avoid using online payday loan services.

Many times, people who sing up to online websites to receive money are continually debited money in terms of fees and interest as they have provided their account and personal details. Be suspicious of online institutions that especially provide their e-mail address instead of a physical or phone contact.

Check for a license

However cumbersome this might be, contact the Department of Financial Institutions to see if that Payday loan lender is licensed to operate before taking up any loan with them.

Never send money before hand

A request to send money in advance to cover the cost of taxes or application process is a red flag. Run when you notice this. Authentic services don’t ask for money in advance.

Read the Terms and Conditions

Before signing anything, carefully read the terms and the fine print to check for any hidden fees or any other illegal activities that may be hidden.

Report

Do not keep such experiences to yourself. It’s important you report these cases of payday loan scams to your nearest authorities to see justice is served.

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