This is why you should never apply for an online payday loan…
A family member of mine who has a complete incapacity for making sound financial decisions turned me on to this one… by accident. She was in a bind and applied for an online payday loan. She was having trouble with the computer at the end of the process, and I was called to figure it out.
It was just a blocked pop-up, and she was able to finish the application. I did notice that the annual interest rate on than was over 1200%, and told her so. She got irate and told me it was none of my business. No that wasn’t a typo, over 1200% annual interest.
She got the loan, paid what needed to be paid, and was happy, for about two days.
Then her account got debited for that little bit that was in it. The account was then overdrawn, and the bank charged a fee. When she went to the bank to sort this out, the banker called the company that debited the account.
It was an online coupon club subscription type thing, and they said she had signed up for it when she signed up for the loan. To keep further unwanted debits from her account, she closed it and opened a new one elsewhere.
Then came the problem of paying the loan for a few hundred dollars plus the $100 plus interest added in one week. Yes, $100 interest in ONE WEEK. She wanted to pay the thing off and be done with it. But if you search this company online, there are numerous reports of how this payday loan really works.
First, in the contract, you agree not to sue, to handle disputes by binding arbitration, and that you’ll never join a class action lawsuit against the Payday loan company. I’m telling you, read the contracts people. By agreeing to that contract, you permit this company to debit from your bank account, that’s how you pay the loan back. But they can take it in pieces and whenever they want to.
In addition, the contract automatically rolls over the loan so you pay only the absurd amount of interest each week. So a $300 payday loan, for example, could balloon, allowing them to debit $700 or more out of your account in the first month.
This loan agreement makes loan sharks look like Cub Scouts. The agreement also allows them apparently to keep and sell all your personal information, account numbers, Social Security number and and ANY personal information typed into your computer afterwards. Seriously.
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A lot of people in this country cannot handle money, our education system purposely leaves out a true understanding of how our money system works. Lots of people get into financial trouble, and look to desperate measures to get out of a cash flow bind. Yes, this is ultimately their fault. But the system is totally stacked against the average person these days.
I mean, in the sub-prime loan debacle, governments and professional investors lost billions, and they’re supposed to know what they’re doing. A person of average intelligence is overwhelmed by the complexities of even this small loan agreement. So they pay through the nose for making a bad decision apply for an online payday loan.
Once the loan is funded, the only way to contact the company above is by email or an automated phone system. There is no number to get a live operator, and no physical address is in their information anywhere. That makes it hard to pay them back by certified check or other off line means. Now in this case, my family member emailed them, and received an address to send the payment.
So how can you make money off all these losers looking for online payday loans? I discovered last night that these payday services have affiliate marketing programs. According to their websites, you can get as much as $50 to $75 for each person you refer to one of these programs.
To do this you have to start a blog or website, sign up for the payday loan affiliate program, and link to the payday loan site. Every time someone follows your link and signs up for the payday loan, you get a commission. These companies are sketchier than a junior high art class, but in today’s screwed up world, they’re legal… for the moment. And you can make money by referring them business… if they actually send you a check.
I don’t recommend this at all, but it’s out there, and I learned about it, so I let you know. And if you’re really in a bind for a couple hundred dollars, you’d be wiser to take something you own to a pawn shop, it’s a lot less shady than these payday loan places.
After doing some research on these online payday loan operations, it would not surprise me a bit if these are front companies for one intelligence service or another. These online payday loan operations are far more lucrative than drug running or arms dealing, which is how black operations have been funded for decades supposedly.
This is pure speculation on my part, but it wouldn’t surprise me one bit. Government and private intelligence services are operating on a scale never seen before in human history, and it’s one possible explanation for the secrecy of these online payday loan services. Then again, it could just be greedy souless slimeballs doing it.