It is not for nothing that the governments across the world are turning against the payday loan stores and bringing tighter regulatory norms for them. The nature of consumer complaints against them speaks volume about their unlawful ways and means. Though the genuine payday loan business is based on meeting the short term needs of the people, there are many fakes which make use of your private information to play havoc on your bank accounts.
Here is a list of the different types of consumer complaints against them:
1. One person did apply for a loan but was never informed when the money got transferred in his account. He was also charged a processing fee upfront. Neither the due date was communicated.
2. Cheat Payday loan stores do not give their information easily. They are not going to tell about their company, their owners or give any prior information about the loans. On the contrary, they would like to seek all your information like bank account details at first. They would ask you to fax all the documents to them without telling how much loan is approved and its terms and conditions.
3. They keep you in dark over how much amount has actually been put in bank. The actual amount in bank and the customer bill sent by them could be different with the latter showing the higher sum was charged. Rather, these companies will inform about the interest charged which could be half of the amount transferred.
4. They do not respond through any means, either by phone or by email. This makes the customers totally hapless.
5. They resort to electronic banking methods and deduct the amounts from the account without any authorization, prior information and even before the payday. They do not disclose the terms and conditions of loan as well. When requested to paper billing, they will simply refuse it outright.
6. At first, they take money out of account without authorization. Thereafter, they make claims for the interest money.
The nature of these complaints against the payday loan stores indicates that they commit cheating and fraudulent activities. They hide themselves under the garb of online payday loan websites and project themselves as conducting normal business. The reluctance to disclose information about their identity, their location and the loan terms and conditions makes them highly suspicious.
