Beware of Online Payday Loan Sites
Online business is a real tricky one. If you know the trick, good but if you don’t then landing on troubled waters could be your fate. Pay day loan sites have increased like any other. So what’s the big deal….we do want options, don’t we? But the caution thrown in by the Consumer Federation of America (CFA) to consumers is something we need to heed. The federation has warned that accessing Internet payday loan sites, where loans due by the next payday can cost up to $30 per $100 borrowed and borrowers can typically face annual interest rates (APRs) of 650%.
Through these websites customers borrow money by transmitting personal financial information via Internet. The CFA survey states that about a hundred Internet payday loan sites for small loans involving electronic access to consumers’ checking accounts pose high risks to consumers.
The survey suggested that many lenders renew loans automatically, thereby withdrawing the finance charge from the consumer’s checking account every payday. This might be reason enough for many people to stay away from Payday loan for a long time to come.