Online Payday Loans

November 18, 2013

Online payday loans can seem like fast, easy money that consumers can take advantage of without leaving their homes. Many times consumers get lured in and find themselves spiraling downward into debt. There are some issues that all consumers should be wary of when borrowing money online.

When you go online and put in your information, the website you are using may not actually be the lender you are borrowing from. Oftentimes websites take the information that you put in and sell it to payday loan lenders. This means that your sensitive information, social security number, bank account number, and phone number, may be sold to a large number of lenders.  Those lenders in turn will call you to try and convince you to sign up for their loan.  Not only are you risking having sensitive information leaking out, but this may also led to a consumer taking out more loans then they can afford to pay back.

Payday loans make money by charging a lot of interest—which can be 115% or higher. The notes are small but the cost from interest and penalties can add up very quickly. Also, pay day loans will offer a consumer the opportunity to refinance and pay it back later, which allows them to charge more fees and interest. The collection companies will also send bogus emails that threaten consumers with criminal charges and lawsuits.

A payday loan is a dischargeable unsecured debt in bankruptcy, however some unscrupulous lenders will use tactics to try and collect the debt.  First of all, sending notice to an online payday loan is difficult; they often never provide you with a contract or a physical address. Since all bankruptcy pleadings work on mailed notice, if you can’t mail them notice they may not stop calling. Furthermore without an address your attorney can’t serve them with notice for violating the automatic stay.

If you are having issues with payday loans or unscrupulous collectors, contact the experienced attorney’s at Fears Nachawati for a free consolation. You can reach us at 1.866.705.7584 or you can send an email to fears@fnlawfirm.com.

More Blog Posts

CONTACT US

Use the form below to send us a note, call us at 214.890.0711 or chat with us live. We are eager to help with all your legal needs. Please keep in mind that any unsolicited information sent through our website cannot be treated as confidential. Contacting us through this site does not create a representation relationship with Fears Nachawati.

Inquiry Type

  • General
  • Personal Injury
  • Immigration
  • Bankruptcy
  • Drug Litigation
  • Family Law

Locations

With offices in Texas, Florida and Colorado and attorneys licensed in Texas, Florida, Colorado, Arkansas and Oklahoma, Fears Nachawati is dedicated to attaining the best possible solutions for our clients’ business and personal needs. We strive to be professionals who are creative, empathetic and reliable.

All Areas Served

We Can Help

Contact Fears Nachawati today

Free Consulation

Live Chat (Online Now)