Beware of Online Payday Lenders

Date April 29, 2009

I was watching Clark Howard - one of my favorite Financial Gurus – today on CNN and his segment was on Indian Online Payday Lenders. Payday lenders offer short-term loans with extremely high fees typically to consumers who live paycheck to paycheck. The consumer will write a post-dated check to the lender and the lender will collect that money once it has been deposited to the consumer’s bank account.

The new “scam du jour” is this: American Indian tribes are now in the business of doing online payday lending. They say that because they operate on a reservation, they don’t need to abide by U.S. laws. That being said, they are charging exhorbitant interest rates (as much as 1000%!) for unsuspecting consumers to borrow their own money!

If you read this previous post, you will know that I’m not a fan of predatory lenders. I’m especially not a fan of predatory lenders who are not government regulated!

So please, forward this information to everyone you know and don’t let them be taken advantage of. If you are in need of emergency funds, there are better, regulated ways to get money.

Questions or Comments? E-mail me at blogger@matadorsmoneymatters.com.

Category Posted in Alerts & Scams

One Response to “Beware of Online Payday Lenders”

  1. Topics about Lenders » Beware of Online Payday Lenders | Matadors Money Matters said:

    April 29th, 2009 at 5:42 pm

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