Originally Posted on the Federal Trade Commission
https://www.consumer.ftc.gov/blog/2020/05/paying-and-paying-and-paying-payday-loans
May 22, 2020 by Lisa Lake Consumer Education Specialist, FTC
If you don’t have the cash or credit to cover a financial emergency, you might be thinking about getting a payday loan. But some payday lenders are not honest about how they collect on those loans and take more payments than they said they would.
The FTC sued Harvest Moon and other online payday lenders for their alleged practices in extending high-fee, short-term “payday” loans. In websites, telemarketing, and loan agreements, the companies told people they would repay a set amount with a fixed number of payments withdrawn from people’s bank accounts. But, instead of doing what they said they would do, these companies kept people on a costly treadmill — repeatedly taking money from their bank accounts, paycheck after paycheck, without ever reducing the amounts they borrowed. As a result, some people wound up paying around $1,200 for, say, $250 loans, says the FTC.
What’s more, the companies allegedly debited bank accounts without notifying people and getting proper authorization. The FTC also says that the companies did not give people clear and accurate information about the loans’ key terms, and unlawfully took remotely created checks after selling loans via telemarketing. And when people tried to get copies of their loan agreements or talk to someone about the payment terms, the FTC says the companies made this virtually impossible. In many instances, people had to close their bank accounts to get the payments to stop, according to the FTC’s case.
If you need cash quickly, remember that payday loans are often short-term, high-cost loans. Learn how to manage debt and budget for emergencies. And report it to the FTC at ftc.gov/complaint if a payday lender tricks you into paying more than it led you to believe.
That's it for this time. Thank you all for visiting with us. Until next month, every one please stay safe. Smile. Be happy. Show compassion.
Be nice to others. Put a little love into your heart.
Please speak up for those without a voice, whether it be a dog, cat,
elephant or monkey. One person, one voice can make a difference.
Read a book. Review it. Share it. Pass it along.
Make adoption your first option when seeking a pet. Adopt. Don’t shop. Can’t adopt. Please consider fostering one. The animal will have the taste of home and the shelter will cover the expenses.
Can’t foster? Make a donation or volunteer at your local shelter. Please, don’t hunt.
Unless you’re starving down in a ditch somewhere, there is no logical reason to do so.
Whatever you do, however you do it, please be a voice for the animals large and small.
All it takes is one to make a difference, good or bad.
Together, you and I can make a difference. If you like
what you see here, please consider signing up to become a follower.
Please feel free to share this post with others.
Regards,
S.J. Francis Writing is my passion, but animals are my world.
In Shattered Lies: "Good and bad, it's All About Family."
Available now from Black Opal Books and for sale at on-line
retailers and independent booksellers.
“Some secrets should remain that way.”
And now for some legal stuff: Copyright 2020 by S.J. Francis. Opinions expressed here are solely those of the author, S. J. Francis and are meant to entertain, inform and enlighten, and intend to offend no one.
Remember: Animals don't have voices. We must be their voice. Always. Forever. Wherever. whenever. I'm one for the animals. Are you?
