Are Payday Loans Legitimate?

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Whether you had an unexpected vet bill appear when your dog wasn’t feeling well or you sustained minor damage to your vehicle, you may not have the funds to cover the expenses. These situations can cause significant stress and may leave you wondering how you’ll pay the bills. However, you may want to reconsider those payday loans you’ve been leaning towards. Not only are these loans predatory, but they come with a risk of issues, including scammers. Keep reading to learn more about this practice and discover how a Los Angeles, California debt defense lawyer can help you.

What Are Payday Loans?

Payday loans are predatory options that target those with poor credit scores as a means of receiving a short-term loan. Generally, the payment is due on the date of their next paycheck as a means to ensure they repay the money immediately.

Though this may not seem like an inherently bad thing, these loans can come with an annual percentage rate (APR) of up to 400% and, in some instances, close to 600%. Because many people who need a cash advance are already struggling financially, it is unlikely that they will meet the due date. As a result, their interest soars, digging them deeper into debt.

What Scams Should I Look Out For?

Several scams can impact those who have signed up for loans, regardless of if they even borrowed money. This occurs because several payday applications are submitted to third parties which sell your information to lenders. As a result, there are hundreds of scammers that will purchase this information instead to harass you. Once they sell your data, scammers can start reaching out to you to get you to pay back a loan that doesn’t exist.

For example, you may be scammed out of money if you are told you must pay an upfront fee to receive the funds you applied for. A legitimate lender, which most payday loaners are despite their questionable APR rates, will never ask for a deposit to send the loan.

What Should I Do if I’ve Been Scammed or Harassed?

If you believe you are being scammed, you’ll want to take the necessary measures to protect yourself. You should first request a written copy of the debt they claim you owe and compare that with a copy of your credit score to see if there are any outstanding loans that you may have forgotten about.

On the other hand, if you did take out a loan but the terms were not clear or you’re being harassed by debt collectors for a payday loan you may have missed, you’ll need to contact an experienced debt defense attorney from LA Legal Solutions immediately. As a consumer, you have rights, and you should not have to stand for harassment and vulgarity from unruly debt collectors. Contact us today to learn more about how we can help you.

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