These loans are always deadly to your financial health! Don’t get caught in the payday loan trap. Here are the common dangers:
· The interest rates are as bad as the worst credit cards, and the lenders will try to make you pay even more through “fees”. The average APR (annual percentage rate) can be as high as 300% !
· Once you are in the hands of a payday lender, it is very hard to get away. People remain indebted not just until their next payday, but often as long as 200 days, according to a government report. Even worse, these loans often result in a cycle of repeated debt that can affect you for a very long time.
· By taking a payday loan, you’ve given an unscrupulous lender access to your bank account, and you may find that unauthorized or incorrect charges that you never knowingly agreed to have been sucked out of your account.
· Payday lenders are notoriously difficult to contact if a problem arises.
· While you may not be able to contact the lender, most payday lenders are extremely aggressive about contacting and harassing you if you experience a problem that delays your payments on the loan.
· There have been many reported cases of payments you make not being credited to your loan, or even not receiving the money in the first place after you apply for the loan.
The Federal Consumer Financial Protection Bureau has been investigating payday loans, and recently filed its first complaint against one of them. You can get more information, or raise a complaint yourself, by contacting the Consumer Financial Protection Bureau toll-free at 855-411-2372. You can also file a complaint online at www.consumerfinance.gov/complaint