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Online Payday Loan Brokers: Adding Insult to Consumer Injury

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If you need some fast cash, you may be tempted by ads touting online payday loans. But before you click on a link and share your personal information, I have a cautionary tale to share.

There once was an online payday loan operation that promised to help people find loans. They claimed that they were affiliated with a network of 120 potential payday lenders, and that four out of five people who applied were approved. What’s more, they touted that 80 percent of applicants got loans in as little as one hour.

Lies, I tell you. Lies!

Instead of making loans, the FTC alleges that the operation used the personal financial information they collected from websites — names, Social Security numbers, bank routing numbers, and bank account numbers — to access and debit peoples’ bank accounts without their permission. In all, the bogus loan brokers victimized tens of thousands of people, taking more than $5 million from their bank accounts. 

But the FTC, the cop on this beat, has gone to federal court and obtained an order and asset freeze against this Tampa, Florida-based business, which preserves the possibility of providing refunds to consumers. This is the third case involving allegedly fraudulent online payday-loan-related operations, and the first in which the defendants claimed to broker payday loans.

Epilogue: Before you decide to take out a payday loan, consider some alternatives, and use extreme caution when you share personal information online.


Tagged with: credit, debt, loan, online
Blog Topics: 
Money & Credit


Oh my goodness! I just filed a complaint with the FTC about this same thing. IT HAPPENED TO ME! I hope that someone reads my complaint/case and replies back to me. I will NEVER seek an online loan again. NEVER!

Very true to say ok. Once you make an application to an online payday loan company, you start getting calls from all over the country. And they say they charge a certain amount of interest. In many cases, this is not true. Watch what you are doing alight.

Wow I thought I was only one

How do u file a complaint? I've got emails, numbers and fraudulantly use loan documents from real lenders. I got scammed and I'm out to get them. Thank you.

And theirs more where they came from!

Be aware of these so-called "payday loans". It sounds like a good idea ok. But when you make the loan app on the internet, the following happens. All of a sudden, you get calls from all over the country, and a lot of these companies have phone banks in foreign countries. Even if they have stateside phone #'s. Also you will start getting calls from these companies that claim that they will consolidate your payday loans. And in my case, that's what happened. I got more calls from these companies claiming to consolidate my payday loans, then those that gave payday loans out.
Finally: What the worse one that is. The indian tribes that claim that they do loans. Their interest is illegal, and outrageous but nobody has done anything about these illegal interest rates, because they are afraid of the indian tribes, and the fact that our country caters to the indian tribes. When these indian nations need to get off their backside and stop feeling sorry for themselves and get their tribe members jobs, like the rest of us.

I can't believe these folks. I am glad I found out about these people before I actually drove myself crazy.

I have a payday loan with a company called Discount Advances. Suddenly when I went online to make my payment - I was redirected to another company- that I have never dealt with before, asking me to wire my payment to them. When asked why, they told me the my bank has stopped the practice of having the payment debited- I never had a problem like this before. They asked for my SS# and tel #. What do I have to do? I cannot get hold of the Co.d/Adv. as I did before - my call gets redirected each time. How can I further investigate this?

Dont pay any payday loans back to anyone. Especially if you live in a state that they are illegal. call your to file complaint. Sit back do the math of what you already paid. Close your account , open new and inform your bank on what your doing. and protect your account and any card you ever used.

my sister, in her desperation to get quick money, went online for such an advance. my phone rang off the hook with offers from all over the country. not to mention the spam and pop ups.

I was trying to get a loan from the internet to but my kids school supplies and have a little left to put food on the table because I came short with our finances due to emergency car problem and huge medical bills, i filled up an application on line trying to get at least a %1000 personal loan. I received a lot of phone calls and emails saying I got approved but then at the end they would ask me to show or prove that I am able to pay back the loan by going to Walmart or Walgreens to buy a money pack so i never did. This people have my information. Then later a person named Justin called me that I got approved and will transfer the money in an hour but i never heard from him again. He said he is calling from a company Premier Landing and the website he gave me. WWW.GETMEALOAN.US and he gave me a phone number 253-243-2581 i tried calling this number but i get no answer.... Today, I was checking my bank statement and I have been being charged $29.95 for credit reports and some monitoring company and when I called this companies and told them that I did not make this charges and ask to get a refund they told me i can not get my money refunded because I applied for it online. Even after explaining my situation to this companies they wont help me. I called my bank and told them about this charges today that was on PENDING transaction my bank said they can not stop the transaction because it was thru my debit card, I've never lost my debit card so I dont know how they charged my debit card. I dont know what else to do and every single cent that I was being charged for something i did not do is hurting my finances badly. Does anyone know where can I report that website and the company PREMIER LANDING and the number I have so at least they can not scam a single soul again????? Please help! Thank you and God Bless!

I tried for you and when I looked up premier lending I got a lot of different payday loan offer with a credit monitoring service. Sorry I could not get you anymore information

I'm sending you some websites that you can report them to as well as things you can do to further protect yourself if you haven't done so already. You can report them to also to as well as another thing close your bank account and open another one the websites I just gave you also have loads if in fo to help you I hope this helps you good luck & take care.

Me and my husband got calls like that. We reported it and asked the company for proof and they failed to do it. The first time, they did this to us, they wiped us out. The second time, a few days later, they tried again and it didn't work. Now a week later and they tried a third time. Help, what could we do now. We made a report and all.

elderly man had all funds taken out of cking. no computer. someone opened a new acct in his name on line xfered $ then closed acct. Doesn't the bank have responsibility? WF saying not as acct opened in his name. again the man does not have a computer. Odd!

I was notified by a collection company called amg they said I owe 800 in a payday loan in 2007 I can't remember if I did they said I was being sued by cash net after court fees it would be 2000 dollars if I don't pay I would be arrested for fraud is it true and what should I do

File a complaint on here with the Federal Trade Commission. I had the same thing happen to me and this is a SCAM! Do not pay them any monies and don't worry about the lawsuit because it is all fake!

I am a recent victim of a payday loan scam. I only needed $200 to cover a bill went online to get a payday loan. Stupid me I go with a company that said I qualified for $5000. I told them I only needed $200. I was told $500 was the mim. I said ok was then told I had to pay for verification and processing fee that are refundable. In the end I lost $ 595 and got no money. Weds I called to get my money back and was told I will have to pay $275 to get my "refundable" money back. I am determined to get my money back somehow and hopefully shut that place down. The number they called from is 217-759-3470 Joe Williams and Micheal Phillips are the account managers and I think the company is called Consumer Payday Loans Inc an Illinois corporation. Going to file a complaint PLEASE DO NOT BE A VICTIM. I was stupid please don't be.

I just went thru the same thing yesterday I lost my last $150 this guy name was Steve Wilson and he said they were from cashnetusa their # 214-613-4027 its a Texas # in order for me to get my money back they want me to them another $175 but I refuse to it hurts because I need my money but its nothin I can do I have to take it as a lost

I just got the same email from Steve Wilson about having my Social Security Number on hold and calling my job.

I am getting called from cashnetusa as well last number was 911 before that it was 872-253-2499 ext122 supposedly finance manager India accent they all are name don Watson want me to pay for the eft fees approved thru ftc to wire money into my account I am getting a ton of these ever since the first time I applied for loan online and I have been scammed for at least 900 dollars from samedayloans and lendingclub corporation they scammed me by saying I needed to prove I can pay my payments thru greendot first time and vanilla reload network second time these people have all my info and 9 times out of 10 the so called approved loan calls I am getting are asking for a verification or insurance fee a head of time before I receive cash in my account and a lot of these fauds have all my info what can I do

I have loans with Paydayaccelerated they keep extending the due date without adding additional charges? Is this part of the legal action that took place in NY regarding ACH transfers? Should I just sit back and not contact them? Is it going to bite me in the rear later on?

I have been getting calls all morning from payday loan companies telling me I have been approved for a payday loan. I DID NOT APPLY FOR ANY. Out of 23 calls that I got, 2 of them would give me a little info about how they got my info. Someone has ALL of my information including my bank account numbers. The only thing wrong was the e-mail address. It was a combination of two of my e-mail accounts. How does this happen and what can be done about it? This follows a couple of calls I got a couple of weeks ago saying I had an outstanding balance on a payday loan and was going to be sued over it. I blew that off, but now I am scared I have been a victim of ID theft. What can I do?

At you'll find info on the steps you can take if you think your identity has been stolen.

Here is an update. Micheal Phillips is now calling me from a new phone number 323-801-8221. Tells me my application is still pending and what do I wish to do. I told him I want a refund of the money I sent. He said I would have to pay $ 275 fee. I said take it from the $595 he said he said he could not. I asked why and got no real answer. He keeps calling after I told him I am not giving up anymore money. I refuse to pay to get my so called refundable money .

I applied for a loan from the internet, then I got a call from a man from a loan company telling me that my loan application was approved for $3000, but he wants me to send him $386 so I can get the loan, I sent him $386 but I didn't get the loan, I was ripped off, the man was a fake, I lost $386, the number he called from was a fake.

I applied for a couple of payday loans and received them with no problem. Now I get phone calls everyday from companies offering me loans including car loans. There's one guy who sounds liek he's from India calling me and telling me that I owe him some money for applications fees. He didn't say how much money I owed but that if I didn't pay he would have me arrested. First of all I don't know who he is (John Marten, 646-937-9351) and I didn't catch the company he claims to represent. He does have some of my personal information so I filed a FTC complaint against him and already have a fraud alert on my credit. I don't know why these people can't be shut down this is ridiculous.

this man told me to put money on a greendot card and he would give the loan i reported him and made a police report changed all my information

I have been called 15 times this morning, by about 10 different numbers or so, but the same place. They are calling about me being approved for a payday loan (that I didn't apply for). I asked the first one that called not to call us so early, and he hung up on me, 5 minutes later, another call from a different number, saying I was approved. I let that guy know I just spoke to someone and asked them not to call again. Less than 5 minutes later I got another call from a different number, but again the payday loan thing. At this point I'm starting to get angry.

This continued for about 12 more calls, all different numbers, all some Indian guy, it's like he gets a kick out of pissing people off. I'm certain they aren't going to stop. They will call me at random times.

These are the numbers:

And you can't call ANY of them back. I am so sick of this crap. Just beware.

omg! can you reply to me? i just got a call, from i think an Indian guy, he said i am approved for $3000 loan and the documents are on the way! i freaked out! he said i applied 3weeks ago! hes got my home address! but I dont remember applying do ANY loan 3weeks ago! or even 3years ago or ANYTIME! i never apply for a loan! im a happy wife with a hardworker husband, i dont need a loan! and that indian guy is freaking me out! tell me that was just a whole lotta scam! he said if I want to cancel the loan i have to call their financial office! but no, I hanged up, I dont care if i get some ridiculous documents about that loan, I dont remember applying for that and i wont ever accept it! oh God this is really freaking me out!

301-965-0929 has been calling me wanting my credit card or a check sent to them because their system is down. This is fraud and is totally misrepresentation of this company. FRAUD.

me too! zip 19 said they have a computer glitch and want me to pay my loan by credit card. im not doing it!

I had a loan with Sonic Cash for 500 back in August, They have charged me 1198.75 in finance fees over a 4 month period and 75.00 on top of that toward the principal amount for a total of 1273.75 that I have paid them. My bank stopped them from taking payments back in November as they feel I have paid more than my share back. They now have a Union Group calling me constantly and now a Bill Miller calling from a private number saying he is a locator for them and if I don't pay and additional 671.25 he will come to my work and serve me with papers. I don't know if that is legal, I have been looking up stuff all morning, and I keep getting conflicting information. A lot of sites are telling me payday loans are not legal in my state and that technically they owe me money back. They call my house and my job and it is really stressing me out not to mention I have told them not to call my place of business and they still do and harass my boss. I am afraid if they don't stop I will loose my job. If anyone has any advice I would sure appreciate it.

A debt collector should not contact you at work if you have told them that you cannot receive calls there. They also are not allowed to discuss your debt with others. I would file a complaint right away with the FTC and with your state attorney general. The next time you get a call tell them that you have filed these complaints . For more advice, please read our debt collection article.

I have been harassed by different companies over the past 3 yrs claiming I have committed bank fraud for some payday scam. They are trying to scam money out of me I have been contacted from 20 diffrent numbers of the past 3 yrs. When I do not respond to their calls or tell them I am reporting them to my local police department they laugh and get nasty with me over the phone. I have changed my phone number several times but they keep getting my phone number. I have an open police report that report to a detective all phone numbers that call me and who called me and what I was told.

I just lost 553 and provided this company with my bank account number. What do I do ......I thought I was going to get the money refunded to me with in a matter of minuets....what can I do and how do I report them and the info I have for them.

You can file a consumer complaint with the Federal Trade Commission (FTC) at

Well I here to tell y'all I was just scam on today. Applied for a payday loan on line and low and behold I found myself going to Walgreen's to purchase a money pak card in the amount of $152.00 and the guy name I was dealing with name was Paul Jackson, said he was Cash America out of Texas,214-444-5975. Ask me to call him back when I purchased the card then I scratch the back of the moneypak card and gave him the number, he then said the money will be in my account in 30 minutes. He had me on hold for a while, so I went home and called the number and had his ext. 10106 and they transferred me. I ask him why did he put me on hold for such a long time, he said that the bank just sent him a confirmation email stating the transfer went through and he told me to wait 15 minutes and the money will be in my account. Not!!! he called me back and said it did not go through because the Federal Reserve Service (FRS) that is what the initial he mention has taken the money because my credit score was to low and I would have to pay and additional $350.00 just to show that I am in good standings, and they would put the money back in my account after 15minutes, I told him he fooled me once shame him but I was not going to let him fool me again, a bunch of scam artists from India. I am also going to file a complaint with the FTC.

How can I stop the phone calls? I blocked many numbers but more just keep coming. What do I need to do?

I received a phone call that had terrible reception, very hard to understand,I asked for repeated phone calls, not understanding someone on phone makes me feel hard of hearing. Anyway, I was told that I qualified for a loan. Of course, I was
having a hard time with money so I listened. They said they were from my bank and wanted into on accts., so they could put money in my acct. If they were from my bank - they should have numbers so I wouldn't release them. I called my bank and couldn't give me and info on this. I am going to
call the fraud dept and give them the info so hopefully these people can be caught.

After 4 yrs of rehab from a major car accident, I finally went back to work. I have a background in mortgage, but jobs in this industry still hard to come by so I took a job as telemarketer. Turned out to be a big scam and wrote me a bad payroll check. for 1500.00. Now, I'm in a world of hurt so I went online to get a personal loan to cover my bills. My phone exploded. 83 calls in one day!!! All from India claiming that even though my credit was less than perfect they were ready to loan me $3000.00. I just had to prove I could pay the first month installment. Was told to go to home depot and purchase a Loaded PayPower card. I didn't go coz I knew it sounds to good to be true. NO LEGIT Loan company is gonna transfer money into my account w/o Signing Loan Documents. I've received actual paperwork from these people claiming to be all kinds of actual companies here in the states, Bank of America, Ace Cash Express (which I know can't be real coz they denied me) Cash Net USA, and a whole list of others. DO NOT GET ANY KIND OF CARD FOR THESE PEOPLE. THEY ARE ALL A SCAM!! I plan on contacting all the agencies I possibly can and reporting them all. I will send the documents as I have saved them for this exact purpose. The sad thing is they prey on those that need it the most!! We can all HELP STOP these CRIMINALS by getting the word out to EVERYONE!! Call these people back. Tell them you have reported them. put up blogs.. contact the FBI or anyone else you think might be able to shut these people down. They aren't American, the do not care that they are stealing from people!!!

I was scammed by the online payday loan companies back in 2010 and it has been an absolute nightmare trying to get all of my business back in order! I've had to switch my bank account, put fraud alerts on my credit report, and suffer the consequences of these scam artists calling me and my relatives all the time! They call my cell phone, work phone, and my relatives stating that I'm going to be arrested for defrauding a bank, etc. It's been horrible! I wish the FTC would really crack down on these people. I don't know who these scam artists are because just as other people mentioned in their posts, when you call the 'several' numbers that they call you from, they either don't answer or they ring busy so you can't resolve the issue! I'm pissed, annoyed and want a resolution!!

This is so true. I got scammed out of my money. I was told I was approved for a loan up to $10000. Went and got a card (ReLoadit) put money on it, because this is to show good faith. My mother always told me you can get something for nothing. He told me that they could not transfer the funds because I did not give them the right routing number so I did not get the loan and I was out of $145. PLEASE BE A VICTIM. IT IS A SCAM ALWAYS FOLLOW YOUR FIRST MIND!!!!!

My problem is Steve Wilson, Mr. Thomas, Samantha Williams, ACE, and ACS. I have paid over $1500.00 since March of this year and they are still threatening to take me to court. They have sent me Arrest Warrants, court notices, failure to appear notices, and numerous threats about stopping my SS/retirement checks. This has caused me to have to change my debit card and pay fees b/c of them. They are still trying to get me to pay $315.00 or face court costs up to $4500.00. Isn't there a law about this? It's causing my diabetes to go haywire and my nerves are frayed.

If you received an arrest warrant and a court notice, pay attention to those documents. If you are facing a lawsuit, the FTC article Hiring a Lawyer has tips for you.

These are all fake documents. They can not take you court over a payday loan. Stop worrying about, and change your number. I would also contact your local police department and show them the documents. I went through this as well.

Has anybody ever herd of Illinois payday loans? I'm trying to find some more info about them.

There is a company they claim to be part of the federal government. the number is 3233150437. They call themselves cash America. They tell you to show you could make the first months payment, then they take your money and claim you have to pay more money to get your loan through them and claim this is all apart of the federal government. they are based in Los Angeles. Please do not do business with them.

asking for so many days from Social Security phone income tax summit open the loan in my name without me knowing it and I file a complain

I can not believe you all have been falling for these scams!! You know they are using this money to fund terrorism right? Stop being so dumb! You are wiring money to Middle eastern people. Smh

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