Extra Tips to Choose a Payday Loan Company
Even though payday loans have a negative connotation in today’s world, many people still turn to them because they feel like they have no other option. These loans get a bad reputation because of the questionable companies that operate in the market, and the problems that these types of loans can cause. Many consumers get sucked into a cycle where they need a loan to make ends meet, but then cannot pay it back quick enough to avoid high amounts of interest, so then they need another loan by the next paycheck. Regardless of why someone needs a loan, we have some tips that most don’t consider before pursuing a payday loan.
- Choose a lender that works with large institutions – In the world of payday loans, there are larger companies that offer a wide range of loans, and they usually work with large, reputable banks and companies. It is preferable to work with these types of companies over the fly-by-night companies that offer only short-term loans.
- Nearly half of the states in the U.S. has legislative acts that allow these payday loan providers to operate. That same legislation also polices how licenses are obtained, which also dictates how these companies should run. For example, if you are looking for Las Vegas payday loans, then you would want to make sure you go with a company that is licensed by the state of Nevada. If you are still unsure, you can contact the office of the Attorney General in your state to verify if the license is legitimate, and if the company has had any problems in the past.
- Beware of lenders that use Native American lands as part of their business model. Above we mentioned how companies are policed by their state legislation, and that you need a license to operate, but this is all set aside if the company operates from Native American lands. These companies are, for the most part, exempt from consumer protection laws that other companies have to adhere by.
If you believe you’ve been wronged then you should immediately contact the Attorney General of your state, and the FTC (Federal Trade Commission). The FTC will investigate your complaint if you believe the company has engaged in illegal loan agreements.
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