Study Finds Online Lenders are Often ‘Fraudulent and Abusive’
Friday, October 3rd, 2014
The Pew Charitable Trust released a new report, Fraud and Abuse Online: Harmful Practices in Internet Payday Lending yesterday.
Nothing in this reports surprises us here at VPLC because we hear almost every day from people who call us for help with an online loan. Nevertheless it is shocking to see the key findings from this report:
- 46% of online borrowers report that a lender made withdrawals that overdrew their checking accounts
- 30% of online payday loan borrowers report being threatened by a lender or debt collector
- 650% APR is typical for lump-sum online payday loans
A lot of Virginians turn to online loans to get relief from a difficult financial problem only to wind up with a much bigger problem: bank account overdrawn, checks to the grocery store bouncing, debt collectors and scammers calling you, your boss and your family and threatening to put you in jail. And maybe the biggest problem of all: your personal financial information bought and sold many times.
If you have never gotten an online loan-please don’t do it. If you have gotten one of these loans and you are in trouble or under harassment: Call us at 866-830-4501.
Remember: Internet loans are illegal in Virginia. Please see our fact sheet to get more information.