BBB Warns About Online Payday Lenders
The Better Business Bureau is warning people about the practices and claims of some online payday lenders. “Desperate times are leading people to the Internet to apply for payday loans and many are falling deeper into debt after getting tangled up with a lender who has zero regard for the law,” said Stephen A. Cox, President and CEO of the Council of Better Business Bureaus. “Unlike a payday loan that you might get from a local business, online payday loans require your bank account number and, as a result, the borrower is at the mercy of the lender as more money than they counted on is withdrawn from his or her account.” Hundreds of people have complained to the BBB after signing up for a payday loan on sites like OnceClickCash, 500Fastcash and rbloans. Consumers complaints said they agreed to what they thought was a one-time payday loan, usually a few hundred dollars to be paid off in two weeks. They provided their bank account information to the lender and the money was then deposited. The arrangement leads to a debt spiral.
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