Banks and credit unions have joined the best direct payday loan lenders in providing short-term fast cash loans to customers. In order to obtain a loan from a bank or credit union a customer must have an account with them in order to be approved. The idea that the loan comes from a big bank verses direct online payday loan lenders offers increased security to some users.
In some cases, the advantage of working directly with your own bank does provide both relief and security. This safe and secure feeling is appreciated by those who work hard to pay back their loan on-time. For those who have trouble making good on their loan will find that doing payday loan transactions in their own bank could bring additional troubles. The bank has primary access to any deposit you or your employer makes. There is no hiding a paycheck when you do business with the short-term loan lender. When the bank claims their payment as soon as you put money into the account, you could face additional problems from other merchants as well as accrue overdraft fees. At this point, your bank loves you as a customer. They are claiming double duty when it comes to fees plus interest.
Choose responsible direct payday loan lenders to avoid hidden charges.
When you work with a direct payday loan service that debits hidden or fraudulent charges from your account without your knowledge, your troubles triple. Now your money situation has turned form needing cash to wasting cash. That’s right. Between spending money on high interest in order to obtain financial help, a predatory lender now works at charging your account with fees you were never aware of. It is moments like these that you can think in hindsight how it would have been easier to do your homework to find an honest direct lender.
Enter the banks back into this situation. Every time a predatory lender takes out unauthorized cash, your account runs the risk of its own troubles. If that money was earmarked for other expenses, then overdraft charges are sure to happen. The bank now has gained profit from doing nothing at all. Unfortunately for some customers, their banks drag their feet or ignore requests to keep predatory lenders from debiting in such manner. J.P. Morgan Chase Bank is working on training staff and reworking regulations so that these types of unauthorized charges are not available to any direct payday loan online lender. It will also make it easier for customers to report their troubles and get the problem corrected faster.
Before you apply for any type of alternative money, take the time to talk to the direct lender in order to fully understand their terms, conditions and fee policies. You don’t want to be blind sided with additional costs, especially if you are already living on a tight budget. The less you have to pay extra the faster your budget will be able to bounce back from your financial emergency.
Pay attention to your banks accounts. Press you bank to take action against any type of unauthorized debits. Do your research to find a responsible direct online lender to limit the money you spend on a payday loan.
