How to Identify Predatory Lending Practices

CashAdvance.com wants you to be as informed as possible when searching for a payday loan. To that end, the CashAdvance.com network of lenders has been created.

Educating to ensure consumer protection requires publicizing the dangers of working with predatory lenders. CashAdvance.com makes a reasonable effort to work only with reputable lenders, but reports have surfaced in the past about lenders outside the network engaging in predatory lending habits. These are a minority of the industry, and are not necessarily indicative of the average cash advance experience.

Be that as it may, it is important you know about some of the warning signs of predatory lending.

First, many states have very strict regulations on loan term limits, maximum loan amounts, and especially limits on the maximum interest rates a lender can charge. You can find all the details pertaining specifically to your transaction by checking the CashAdvance.com Consumer Resource page for your state. If a lender is breaking any of these regulations, you can be sure that they are not to be trusted.

From your state’s Consumer Protection page, you can find local agencies, which monitor the payday loan industry in your state. These agencies usually have a registry of all the legitimate, state-licensed cash advance lenders. You can check these registries to make sure your lender is included.

If a lender ever seems lax in your application, allowing you to knowingly fabricate information in order to get approved, you should definitely conduct your pay day loan business elsewhere.

If a lender ever guarantees that you will be approved prior to receiving your application they are breaking the law. While a majority of people qualify for a cash advance, there is no absolute guarantee.

The Truth in Lending Act requires that all borrowers are given the exact terms and conditions of their loan, in writing, before they sign any loan contract. If a lender seems hesitant or refuses to inform you of all possible penalties, interest rates, etc., until after you sign the contract, do not sign.

Also, if you are charged any upfront fees before you can have any funds, you are most likely dealing with a scam artist who will take you fee and never give you your loan. Cash advances are for people who need money, charging them before they have any funds is not logical.

For more information on who to contact in the event you feel you are a victim of predatory lending, please check out the CashAdvance.com Consumer Scam Protection Resource.  If you have been victimized by fraud, file a Scam Report to raise consumer awareness or engage in community-generated discussion of these crimes with other consumers in our Scam Report Forum.

A cash advance, also referred to as a payday loan or payday advance, is a small, short-term loan that is intended to cover a borrower’s expenses until the following payday. Cash advances are intended for short-term financial relief and do not constitute long-term financial solutions. CashAdvance.com is not a lender and does not make loan or credit decisions. CashAdvance.com provides a loan request service only and is not acting as a representative, agent, or correspondent for any service provider or lender. Consumers are encouraged to consult CashAdvance.com’s State Consumer Resource pages to learn more about the risks involved with cash advances and local laws and regulations governing cash advances.