Payday Loans Practices Being Scrutinized By The Better Business Bureau
The BBB has been receiving an increasing number of complaints from consumers who have had a bad experience dealing with online payday loan providers. ?Consumer complaints range from inaccurate fee quotes to undisclosed terms and the inability to contact customer support with questions or concerns about their loans.
One of the big issues with these payday lenders is that because they are doing business online and serving consumers on a nationwide basis, they may not disclose specific guidelines that are applied by the state in which the consumer lives. ?At this point, most states govern payday loans in their jurisdiction differently and in the defense of the many online payday loan providers who offer services over the Internet, it would be very difficult for them to keep up with the constantly changing regulations of all 50 states.
Because the Internet business landscape is still in it’s relative infancy from a regulatory standpoint, many of these national online loan providers simply adhere to the policy of the state where they are based and assume that if a consumer is doing business with them, then they are effectively doing business in that state and therefore should adhere to those particular state regulations governing online payday loans.
State regulations differ dramatically in the amount of interest and fees that can be charged by online payday lenders operating within their state borders and those fees can range from as low as 7% flat interest up to over 300% annualized interest rates. ?Late fees and loan renewal fees are also highly regulated and differ dramatically from state to state. ?It is in the best interest of the consumer to check out the online lender who they plan on dealing with and ensure that they don’t have a high number of complaints from other consumers who have previously used their services.
Most online payday loan providers offer quick pre-approval applications on their website where they gather the basic information needed to qualify the applicant for the loan. ?Once this basic information is evaluated by the lender (in just seconds), the will offer an approval to the consumer and then allow them to complete the loan once they have seen the fee and payment disclosures.
It’s not that the online payday loan businesses are intentionally trying to deceive the borrower, it’s just that keeping up with each state’s regulations just isn’t practical so they chose to offer the terms that are consistent with their own state of operation. ?As long as those terms are acceptable to the consumer, both parties can complete the loan, hopefully without any complaints.
We were able to locate one website on the Internet that actually posts consumer reviews of online payday loan providers and will only publish reviews of those websites that currently have no complaints registered with the Better Business Bureau or the Federal Trade Commission. ?You can find the site by searching for ?http://www.bestonlinepaydayloan.com/>Payday Loan Reviews or
Best http://www.bestonlinepaydayloan.com/>Online Payday Loan .
Make sure that the Internet loan provider that you plan on doing business with is free and clear of consumer complaints so that you can feel safer in dealing with these online loan websites.
