Payday loans are notorious for being under the watchful eye of the Consumer Financial Protection Bureau (CFPB). The focus of the company is to make consumer financial products and services work for customers. They supervise banks, credit unions and other financial companies as local police would watch over a neighborhood. Everyone in the playing field should be playing in a safe and responsible way. When there is a player who breaks the rules, the company will be called out and when appropriate, charges made. The CFPB look closely at more than payday loan lenders, but into those involved with debt-relief.
Debt-relief scammers have come out of the corners setting up fraudulent practices online and out of offices. It is not just fake companies which are taking advantage of people in desperate need of debt relief, but lawyers as well. The CFPB joined the Federal Trade Commission and other regulators targeting lawyers involved in debt-relief scams.
A California law firm is now being sued by the CFPB. The law firm and two subsidiaries have allegedly preyed on residents who are financially strapped by offering a service which would lower their monthly mortgage payment. In order for this service to be provided, upfront fees $2500 – $4500 were expected as payment. The trouble arose when there were no services which followed the fee. The judge placed a restraining order against the law firm and appointed a receiver take possession of the firm and all its affiliates.
The payday loan industry is not the only business with predators.
With all the bad press the low cost payday loan industry gets, it comes as shocking news when what thought to be reputable law firms are involved in scams. In fact, if you look throughout the financial industry from the top to the bottom, you will find people and businesses corrupting the playing field. The bottom line is money. Greed sets in and those who are the most financially vulnerable tend to be the most targeted.
When a person has limited options for help with finances, the fraudulent companies will be using any tactics possible to get money out of these customers. Debt relief programs, lawyers, consolidation companies, and lenders are feeding off the already financially crippled.
Focusing your business on vulnerable customers with no intention of providing the services paid for is fraud. Fees which are paid up front have been a much discussed and regulated form of payment with financial companies. Debt settlement programs can only collect fees once a debt has been settled. Payday loan companies will collect fees on the payoff day, not before you get your money. Lawyers have always been in a different playing field with the reputable trust behind their profession. It is agencies like the one mentioned above which quickly lesson the reputation. People will be more cautious in placing large down payments in exchange for a lawyer’s services. Not only is this fraud hurting people’s finances further, but it will keep future clients wary of retaining a lawyer.
Spotya! Online Payday Loans always suggest doing your homework. Finding the first company or person available to do a service is not the last one you should look at. Shop around and ask around. Find out the track record of a lawyer the name came without a recommendation. Do your homework before your money gets involved. A responsible borrower is a successful borrower.