When Scammed by Payday Loan Companies

There are a lot of payday loan companies that are legal and use the agreed system and follow state laws. Although their interest rate is higher than most of the loan providers, they don’t resort to scam and they use legal means to get money from you. Since you have agreed to their terms, you have to pay them.

They will never threat you but they will use all the legal means possible so that you will have to pay the loan including the interest. The interest is unfair but since you signed up for their services, you have to pay them.

But there are companies who don’t only charge you with high interest rate; they will get money from you even though you don’t already owe them. There are companies will ask you for a money upfront for “processing” fee and will vanish into thin air. These scams often happen through online payday loan companies.

That is why it is not recommended to obtain payday loans through online companies since you will not see their physical office and verify if they are truly a legitimate business. As much as possible stay away from this type of online transaction or better yet, considers other options beside payday loans.

On the other hand, there are still people who are being scammed by payday loan companies. Some are still being harassed by phone calls from the online payday loan companies even though they have already paid. The phone calls are threatening wherein they will ask you to pay up or else they will tell your boss about it. Other scam consists of unauthorized withdrawal from your bank even though you already paid them.

If you are sure that you have already paid in full, call them or send over the documentation that tells that you have already paid. Insist of speaking to the supervisor and ensure they will never bother you again. When you are receiving harassing calls, record the phone call and tell them they are harassing you and they should never call you again.

By law, they are obliged not to call you again since it’s against your wish. The law is called Fair Debit Collecting Practice Act and this law protects the debtors from being harassed by their creditors. They should know about this or else they will be accountable to this law. Also close your savings account so that they can never access your savings account again.

Opening up your savings account to EFT unfortunately has a very bad consequence. Aside from accessing your account remotely from any account, your account is also open for others. That means aside from depositing money to your savings account, others can request money from your savings account without you knowing it. So it is important to close your account connected to EFT to prevent unnecessary and unauthorized withdrawals.

There are also times when money is taken from you even you have already paid them in full. At first ask them for a refund regarding this. If they do not, it’s time to report them to different authorities such as BBB so that they will be dealt with the full force of the law. The federal government has also set up assistance online so that you can report websites and local payday loan companies that have scammed you.

If the payday loan is your final resort in getting money on time, be sure that you are doing business with a company who will never scam you. Keep your principal low so that your interest will also be lower. That way, you’ll be able to pay them on time and not be scammed with additional payments that you don’t owe.