When looking for a direct online payday lender to help out with emergency costs, it’s important to understand how these loans are supposed to work. The more knowledge you have going into to your search, the better equipped you will be in finding the perfect lender. There are too many predatory lenders out there waiting for inexperienced borrowers to come knocking on their online doors.
Most responsible lenders will be straight forward with their customers. They are easily reached and respond to questions efficiently. There are never unreasonable demands and will they ever ask for money up front. Some companies get away with applications fees as a way for obtaining extra income. It is important that a borrower knows what to look for during the application process or at least calls ahead to find out if the company charges application fees. There is no need to pay for filling out an application unless it is something you want to do. Most customers have no money to spare. It led them to a payday online lender in the first place. Keep your money safe and by finding a responsible company to work with.
Every now and then there is a story reported about a customer losing money in their search for quick cash. It is always sad to read how the customer is duped out of what little cash they do have. It is important to spread news like this in order to help educate another potential borrower from making the same mistake with this lender or any other fraudulent company.
One of the most important rules to remember is that online payday lender will never collect up front money!
A woman in Georgia lost $600 of her own money in an attempt to obtain a $1600 loan. Needless to say, the loan money never came in and her initial investment was not returned either. This situation stemmed from a woman desperate to obtain funds, a lack of prior knowledge about how the online payday lending industry works. She talked to the company representative on the phone and was instructed to send almost $600 to cover processing fees for her loan. She was concerned by the request as it was unfamiliar to her understanding of how the industry runs their loans. It didn’t sound right and she was skeptical but her desperation to get the loan overwhelmed her.
You guessed it! She wired the money in two separate transactions as the person on the other end of the lined promised that by the time she got home, her loan will be in the her bank account. The representative even stayed on the phone with her all the way home as assurance that the money was coming. As soon as she got online to check her balance, yep, the call was lost and no one was on the other end. It was too late. There is no retrieving the wired money and this unfortunate customer found herself in a worse situation.
To help prevent additional problems, she cancelled her bank account that was associated with the online application. This would prevent any further problems with fraudulent withdrawals.
It’s a hard lesson to learn. This woman knew it sounded wrong but went ahead and fell into the fraudulent trap. She will never make the same mistake twice. If her story can help to educate others from falling into similar traps then it will give some value to her loss. There are many responsible direct payday lenders online who will not make any attempts to misinterpret their intentions or take unnecessary funds away from their customers, but they may also reject your application. Part of being a responsible lender is not only following best practices during a loan transaction but will also deny loans to some applicants for not meeting standard qualification guidelines.
Don’t settle for a story which is too good to be true. Know that a direct payday online lender will charge higher interest for quick cash loans but they will never ask for any money upfront.