In some instances, the color green does not symbolize ‘go’. If you have ever taken out a fast cash advance or read about standard practices for the short-term paycheck advance loan industry, knowing the basic process is helpful. The basic lending practices will not vary much from lender to lender. Distinct differences are found in the value of interest rates, fees and customer qualification standards. What never changes is the illegal factor in having to pay upfront fees or processing costs. If you hear or read a request from a paycheck advance lender tell you to place any type of fees onto a ‘Green Dot Money Pak’ before they can complete the loan process, you should STOP rather than GO.
What are Green Dot Money Paks?
Money Paks are an efficient way to reload a prepaid credit card, deposit money into PayPal and make same day payments to major companies. The cards are very convenient for those people who do not have a bank account and want to manage their payments with a simple one step solution. They are obtainable at thousands of convenient locations. You pick up the Money Pak and go to the cashier to upload your money. You can place any amount $20-$500.
The Green Dot brand is a safe and reputable company giving those with bank account or credit challenges an opportunity to manage their money in an alternative way. Like other prepaid cards, the money is not insured like in a bank account or protected like credit on a regular credit card. If you lose it or it is stolen, the company does not replace it. It is standard practice. As soon as you think it is gone, call Green Dot right away in case they can freeze action before anyone has had a chance to take the money.
Unfortunately, fraudulent transactions work in the same manner. If you give your card or the card information to another person or company and they withdraw the cash, you will be left with nothing. If a paycheck advance company ever mentions this card or processing upfront costs through one of these costs, you are dealing with an illegal transaction. You cannot reclaim the funds and that makes the Green Dot brand an easy target. Don’t become an easy target yourself.
Green Dot Money Pak has been at the brunt of many different types of fraudulent activity that they have taken it upon themselves to place a large “Scam Alert” on the homepage to their website. It is imperative that a person’s desperation for instant cash does not cloud their better judgment to see the warning signs of fraudulent lenders. Green Dot provides tips to protect yourself as well as descriptions of the most common scams: FBI Internet Scams, Job Scams, Advance Payment Loan Scams and many others.
If you think you have come in contact with a fraudulent direct lender, it is important to report them as soon as possible. Once they get their money, they may be hard to find. These types will often change their phone numbers to prevent tracking.
Don’t get caught up in a desperate search for emergency cash. Keep your eyes open and stay clear from anything that may sound the least bit fishy. There are many great opportunities for help when bank account or credit challenges keep you from typical solutions. Find the best direct paycheck advance company with fair costs and best lending practices.