Many people rely upon online cash advance lending to meet up their short term cash needs. Payday loans lend up to $1000 to US borrowers. This much cash is enough to meet short expenses that occur without any intimation. The borrowers are expected to return borrowed cash along with calculated interest rate on his next salary date. Sometimes borrowers get trapped into debt cycle when they encounter with fraud lenders.
As internet is flooded with online payday lenders, so it becomes very difficult to distinguish between authorized and unauthorized lenders. Many borrowers do not know how to figure out illegal lenders and how to deal with them. They can try to make benefit from your tight financial circumstances and keep on charging you more money even when they know that they are not licensed. May be they do so because they now that you aren’t aware of their illegal behavior. It is a fact that if you are borrowing for illegal lender then you need to return only principle amount; he cannot charge you any interest rate. If you are struck into any fake lender’s trap then following is the useful information to get a narrow escape.
The first step towards verifying lender’s authority is to contact State’s Attorney General. If you are internet familiar person then you can also contact him via their online website. Then confirm lender’s name or agency’s name from them to know that whether it is a licensed organization. For example:- If you are planning to apply for online payday Loans in Florida, then check its state attorney to know about authorized lender. For you information, for Florida, online payday lending is completely illegal. The next step if you get to know that lender is really illegal then what you should do.
Just go to your bank in which you have active account that you had already attached for payday loans, ask your manager to block your debit card and close that account immediately so that illegal lender cannot fetch your cash from there. Let them know that you are caught into some mess and you need to protect your money from further loss. Get a copy of payday loans laws to convince manager to do so immediately.
Getting your bank manager’s assistance only is not enough; you must inform your employer too that you have closed your account and you have been encountered with some illegal lending company so that your payday lender may not ask your employer to send your wages to him.
Do little online research if you have any doubts and then inform your lender that how you have found them illegal. Hence, you will only pay back principal amount instead of any additional interest rates. Tell them that you have revoked ACH authorization and you have closed your bank account for safeguard. Inform them that you are going to file complaint against them with Business Bureau, Federal State Commission and your state Attorney General’s Office.
Then finally file the complaint. Just be cautious and bold as you may receive some threatening phone calls from your lender. Just don’t reply and respond and let us settle down in our right legal terms.
If you still haven’t paid back principal amount then demand a written agreement form your lender that how to settle down with payday loan agreement. They may demand you to send payments by prepaid cards but try to insist them on money order.
ENCOUNTERING WITH CASH NEEDS ON IMMEDIATE BASIS IS VERY COMMON THESE DAYS. JUST USE YOUR WISE SIDE TO DEAL WITH ONLINE PAYDAY LOANS BORROWINGS IN A LEGAL WAY.