New kind of payday loan scam? Payday loan companies always preyed on those least able to make payments, quickly saddling them with 30% interest and never ending debt. Usually taking their vehicles and leaving them to pay the bank for cars they no longer had.
10yrs ago payday loan businesses were everywhere in my state. Many states, including mine, finally started cracking down on them. Limiting interest and penalties they could impose. They quickly began to close shop leaving strip malls with vacancies everywhere.
The last year I started seeing new internet banks offering what are essentially ‘payday loans’. Especially the last 6 months I see commercials on tv everyday. These ‘payday loans’ are under other names and guises, most commonly ‘cash advances’ on checking accounts. These banks require direct deposit, essentially giving them control of the account holders entire paycheck. (horror stories to follow
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The latest variant is ‘choose when you get paid’. Basically a revolving weekly 'payday loan' from the day you wish to be paid to when your actual direct deposit check arrives.
Instead of brick and mortar stores that states could deal with these new ‘banks’ are national in scope and on the internet. Only the feds can hope to control them.
Anyone else seeing these new internet banks advertised where you live?