Today I would like to talk about the difference between payday lender sites and what are known as “lead generators”. First, I’d like to define both terms.
A payday lender is a company who actually lends money to a customer. This is a website that recieves a potential borrower’s application and determines how much a customer will be loaned. then this company will directly deposit the money into the borrowers account, 100% by themselves. A payday lender has a licesnce to loan. A payday lender will have a contact phone number to address the customers questions and a staff that recieves all the loan applications to process them. These are not the aspects of a cash advance website that simply generates “leads”.
A lead generator is a website that makes it’s money by selling your infornmation to a payday lender company. Usually these lead generators will have many websites that gather information on possible borrowers and sell there info which is called a ‘lead’ in the cash advance business. The lead generation websites do not lend any money to anyone. In fact, when you fill out an application on a lead generation website it goes into the hands of a guy who more than likely knows nothing about the short term loan industry. They are simply there to take advantage of someone who is interested in getting a payday advance online. In effect what there doing is looking through your information and deciding what your “lead” is worth on a scale of one to ten. One being a very valuable lead that they could sell for a high price (usually around $30) and ten being a lead thats not worth so much (maybe around $5).
Some of these lead generation sites are listed here:
Trust me, the list goes on and on. In reality most of the sites out there are lead generaters. This is no secret either. These websites are legally obligated to admit what the type of business they are in. Let’s take CashAdvance.com. There a pretty big website in this industry. They come up #2 in a google search for the term “cash advance”. They are second only to PersonalCashAdvance.com (another lead generator). So if you go on the CashAdvance.com homepage you’ll notice a disclosure at the bottom.
“This website does not constitute an offer or solicitation to lend. CashAdvance.com is not a lender and does not make loans or credit decisions.”
By the way, thats the main lingo for lead generators. A little message at the bottom of a page in size 6 font saying “[the website name] is not a lender” . In fact, that is how I compiled this list. I simply typed this into the google search bar – “not a lender” payday loan.
Try it for yourself. If your thinking about getting a payday loan you should do a little research. It doesn’t hurt to educate yourself