Online payday loan sites - What you must know about payday lenders

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To serve the needs of hungry loan customers, plenty of payday loan companies are offering payday loans on the internet. This helps the customers get a payday loan online from the comfort of their homes. However, there might be some catches when dealing with online payday loan sites. You have to be very careful on what personal information you are revealing to the online payday loan sites. If you give them a credit card or a bank account, make sure the online payday loan site is legitimate and is operating in a territory you are well aware about. Some payday loan companies have been known to deduct finance charges from your bank account or credit card without your consent. As with any other purchase on the web, sniff around before you consider online payday loan sites.



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Online payday loan sites - What you must know about payday lenders
Payday lenders all over the country are using the technology of the Internet to move their check cashing stores from the street corner to the World Wide Web. The Internet gives customers the relaxation of getting payday loans in the comfort of their own homes. But, there are many catches to be aware of when it comes to these companies.

According to BankRate.com, these sites require a startling amount of personal and financial information. They require your Social Security number, a driver's license number, your mother's maiden name, a home address and employment information. You also have to give them your checking account and bank routing number.

The most important part to watch out for is giving them your bank account information. By doing so, these lenders have access to your account and may make unauthorized withdrawals and say they are collecting owed funds. In some instances, these online payday sites are not even in the United States. Many are in the Caribbean islands, Canada and elsewhere around the world. So, there is no way to track these companies down if they make unauthorized withdrawals.

According to Consumer Federation of America (CFA), loan borrowers are typically hit with a 650 percent APR's. Most of these sites can cost up to $30 per every $100 borrowed. The growth of these payday loan sites are astronomical and causing major problems with law enforcement officials.

About.com states many surveyed lenders automatically renew loans by electronically withdrawing the finance charge from the consumer's checking account every payday. If consumers fail to have enough money on deposit to cover the finance charge or repayment both the payday lender and the bank will impose insufficient funds fees.

In order to avoid using these types of companies, people are urged to seek payday advances from their employer, put off purchases, put a percentage of money into a savings account every pay check and create a budget.

Pete Glocker is employed in the Education and Charitable Services Department at Debt Management Credit Counseling Corp. ("DMCC"), a 501c(3) non-profit charitable organization located in Boca Raton, Florida. Pete graduated from Florida Atlantic University with a BA in Multimedia Journalism and is an experienced web producer for Tribune Interactive products Sun-Sentinel.com and SouthFlorida.com. DMCC provides free financial education, personal budget counseling, and debt management plans to consumers across the United States. Debt management plans offered by DMCC help consumers relieve the stress of excessive debt by reducing credit card interest rates, consolidating and lowering monthly payments, and stopping collection calls and late fees. DMCC financial counselors can be reached for free education materials, budget counseling and debt management plan quotes by calling 800-863-9011 or by visiting dmccorp.org Pete Glocker can be reached by email at pete@dmcccorp.org

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Debt management program - How to choose the best one

Warning: DO NOT Begin any Debt Management Program, UNLESS the Company You Choose Meets these Six Criteria:

In fact, if these six criteria are not met, don't even get your hopes up...

1. The company has been in business for over one year.

If 9 out of 10 new businesses fail within one year, why would you want your financial future dependent upon the success of a brand-new business?

There's been an explosion of debt management, debt settlement, debt negotiation and credit counseling companies in the past 1-2 years. Check to see when the company you're looking at began operations. BEWARE of brand new companies that will ask for your business today, yet will be out of business by this time next year.

2. The company's Reliability Report with the Better Business Bureau is both listed and free of unresolved complaints.

Check here and watch out for companies with a long list of complaints: www.bbb.org

Look at how long the company has been in business and contrast that against the number of complaints the company has had. It's very rare for a company to be in business for very long without getting any complaints, although some have done it. Pay close attention, however, and RUN from any company who's only been in business for a short time yet has a list of complaints with the BBB.

If a company does have complaints, be sure they are resolved. Ask the company about the complaint and trust your gut when you hear their response. Is it genuine and understandable or do they sound defensive like they are covering something up?

3. The company requires complete information from current statements BEFORE ever giving you a quote.

The Debt Consultant / Counselor / Specialist requires you to provide all current statements for your debt accounts before quoting you a monthly payment amount, length of program or estimate of how much you can reduce your debt.

Beware of anyone who gives you a quote without thoroughly researching your account statuses, creditor names, balance transfer, cash advance and large purchase activities, minimum payment amounts and interest rates FIRST. This is the surest sign of a company who is only out for your initial fees and either has no intention or ability to service your accounts after you sign up.

4. The company is working for you, not your creditors.

In whose best interest is the company looking out for? Better make sure you know! If you ask a bankruptcy attorney what your best option is, what do you think you'll hear? Of course: bankruptcy. But is it really best for you, or best for the attorney who gets paid a healthy fee and never suffers the consequences of the bankruptcy filings that you must live with for the rest of your life?

What about the Mortgage Banker or the Credit Counselor? Think they work for you? Think again...

5. The company is focused on helping you find the right solution for your situation, not forcing you into the only solution they provide.

Is it possible for a company who only provides a single solution to provide you with unbiased guidance in making such an important financial decision? Maybe. But is it likely? No way. There's a trend in financial services that a few companies are finally catching on to, and that is focusing on a client's needs and meeting those needs, instead of trying to "put a square block into a round hole."

Many companies specialize in a single solution and they are indeed the best at providing such a service, but how do you know that's the solution that's best for you? Who do you go to for guidance in deciding what's best for your situation? Look for a company who can provide any solution you may need. Find a company whose focus is finding your best solution, instead of fitting ""their solution"" onto you.

6. The company has real results, a solid, proven track record and plenty of actual clients who are raving fans recommending their services.

Take some time to read testimonials, if they are offered at all. Ask yourself if they are genuine. Listen if you can. Look for a company who can show you examples of what they do, proof of the results they claim and plenty of people to refer to who have experienced the company's services.

Jesse Niesen is the COO of STARTOVERTODAY.COM, a Nationwide Financial Solutions Company solving financial, debt and credit problems for clients nationwide. Jesse has led STARTOVERTODAY.COM in helping thousands of people resolve over $20,000,000 of unsecured debt since the summer of 2002 - without any complaints to the BBB. His team of Financial Strategist offer debt management consultations to help you make your best decision for immediate debt relief and long-term financial success. They offer all options available to you without bias, including debt consolidation, debt reduction, debt elimination, credit counseling, bankruptcy, debt settlement and more! Call toll-free 1-800-251-1991 or visit http://www.startovertoday.com to become DEBT FREE and to have your financial problems solved today!


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Online payday loan sites - What you must know about payday lenders
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