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
Blog Topic: Be Smart Online

Comments

This sounds like a group that is presently operating out of Reno,Nevada. As far as I know, they are still operating, with gains approaching $4 million the last time I checked.

I got a call from a company called IPG, saying owed them $1200 for a loan I had taken out in 2011 They told me that I would be served. asked them if I could have something sent to me in writing regarding the call hey told me tat they didn't do that that I would jut be served papers. Don't think that I should pay these people if they will not provide me with any ifo. what do you think I should do. please help the # for this company 1-866316-265

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