Are,you,Risk,the,Payday,Loan,S finance, share, loan Are you at Risk of the Payday Loan Scam?
If your financial problems have reached the point where you do not see a way out and you feel as though you are drowning in debt, your best way out is through declaring bankruptcy. Filing may well allow you to get your finances back on track Thankfully, there are now several web sites that are there to help people like you with bad credit to find the fast personal loans that you need. When you have bad credit, the first thing that you should be looking for is a loan company that
A cash advance loan is a small, short-term, high-interestloan that is offered in anticipation of receiving a futurelump sum of cash or payment. Although a cash advance may be made in anticipation offuture legal winnings, insurance awards, real estateproceeds, pensions, inheritances or alimony, the mostcommon cash advance loans are for an anticipated tax refundor payday loans. The whole process of applying and getting the loan usuallyonly takes a day or so if you fill out the application formwithout any mistakes and provide all the information anddocuments to the lender that they require. When you applyfor a cash advance loan, it can be done in person, oronline. Most people prefer to apply online for privacyreasons. When you are using the online option, you are required tofill in an application and then submit it. You are usuallyalso required to fax some documents to the lender. Thesedocuments may include proof of identification, bankstatements, latest salary slip and a personal stampedcheck. Most of the applications are approved immediately and theprocessing would usually take about 24 hours. The most common cash advance loan is a payday loan. Theyare usually small [usually less than $500], short-term,high-rate loans that have a variety of names including cashadvance loans, payday loans, post-dated check loans, checkadvance loans, or deferred deposit check loans. The process is that a borrower writes a personal check tothe lender for the amount that they wish to borrow plus afee to cover the borrowing. Alternatively, the borrowergives the lender authorization of automatic clearance ofthe loan amount from their bank account. The lender holds the authorization for auto debit, usuallyuntil the next payday. The fee for a payday check isusually a percentage of the amount borrowed. If the loan is extended, the fees will apply for eachextension. A payday loan secured by a personal check isvery expensive credit. If you borrowed $200 for 2 weeks thefee may be $30. On an annual basis, the interest rate is390%! A common interest rate is 15% which is an APR of 459%. Under the federal Truth in Lending Act, the cost of paydayloans must be disclosed. Among other information, you mustreceive, in writing: * The finance charge (a dollar amount) * The annual percentage rate (APR) which is the cost of credit on a yearly basis A payday loan scam usually gets its name because the lenderdoes not disclose the APR or the finance charges clearly,charges extra fees for an application, decides anunrealistic repayment timeframe, or requests an applicationfee with no intention of providing a loan [online]. There are a lot of loan websites that exist only to getyour personal information [phishing] and then use it to getcredit cards to commit fraud, drain your bank account, oron-sell it to the highest bidder. How to Recognize Payday Loan Scams * A lender that is not interested in your credit history,yet asks for some personal information such as your SocialSecurity number or bank account number [and potentiallymisuse it] * Fees that are not disclosed clearly or hiddencharges * Lenders who ask you to wire money * Be careful with lenders who are not registered in yourstate. To check registration, call your state Attorney Generals office or your states Department of Banking or Financial Regulation. How to Avoid Payday Loan Scams * Each state in the US has different payday loan laws.In many US states, payday loans are illegal. Know the specific laws in your state * Only use a registered company * Check the terms and conditions before agreeing to them * Check the repayment process * Check the terms and conditions for extending the repayment time * Dont ever give out personal information or agree toa loan over the phone or via the Internet
Are,you,Risk,the,Payday,Loan,S