Be Careful of Payday Loans Online
By Charles Hopkins
Published 07/6/2006 | Finance
It's easy, it's quick and it is guaranteed to get you into quite a bit of potential trouble. While payday loans in general have found a market in just about every city in the nation, they carry with them potential problems. Once you take out a payday loan, you have to spend a lot of time trying to catch up and pay those loans off. Well now here comes an even easier way to get into trouble with payday loans, payday loans online.
These rather harmless looking offers pop up on your computer with great ease promising to help ease financial issues that are plaguing you at the moment. They ask probing questions such as, so you have direct deposit and when are your paydays.
Even for those who are just curious it is easy to get sucked in quickly because once you have filled out the initial, "no obligation" inquiry; your email box will be loaded with new offers promising to get you out of financial woes. Problem is once you step through the door of payday loan land it is hard to get a passport to get back out, but when you do so online you run the risk of a lot more trouble than you anticipated.
Online payday loan companies will offer a lot and then give you very little information in return. They are not forthcoming with an address, a contact number or any of the other conventional information you would get if you were taking a loan out of a bank. The thing is they realize you wouldn't be asking them for money if you weren't desperate to a degree, so they know from the start they are holding all the cards. Once you have applied for and received your payday loan online, they will wire the money into your account and then you won't hear from them again until it is time to take the money out of your account, but if anything goes wrong, anything at all, this is where trouble can begin.
The companies themselves are almost always in a different state then you are so the first thing a online payday company will threaten you with is fraud and accepting funds across state lines with the aim not to pay them back. It will not matter why you didn't have the cash in your account; all that will matter is that they can scare you to death. They will then charge you up to ten times what you originally took out in the loan because they can scare you into paying it. After all, you don't want to get prosecuted for accepting funds across state lines and go to jail. What they don't tell you is that they have to prove fraud and when it is a matter of bad money management, there is no fraud.
Most people who take out these loans are not law savvy and never demand things like addresses or loan documents. They simply sign the loans online and accept the money never thinking that things can go so bad that they get harassed both at home and work every day. So before taking out an online payday loan, just check into the background of the company, insist on paperwork and contact information. The time you take preparing and seeking answers just might save you time, money, and embarrassment in the end.