Online Payday Loan Brokers: Adding Insult to Consumer Injury

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

Comments

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

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 dsf.gov 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 StopFraud.gov also to fbi.gov as well as usa.gov 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

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 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 ftc.gov/idtheft 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:
723-546-7543
322-967-7239
420-558-9722
522-672-7526
322-967-7239
290-235-4675
+1-841-517-7669
582-715-4442
448-913-2688
214-377-1332
+1-666-842-0558
683-367-7217
+1-277-656-3299
578-827-1544

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

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.

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