Online payday loans are common sources of scams that draw sensitive data, such as account numbers, from applications, the Federal Trade Commission states. Fraudulent companies may also assess multiple finance charges instead of a single fee.Continue Reading
Suntasia Marketing, Inc. is facing a contempt order for fraudulent loan practices, according to the FTC. The company allegedly used hidden terms and conditions to auto-enroll payday loan applicants in a membership program, which was used to routinely debit money from applicants' accounts.
Another widespread scam involves fake payday loan companies that require consumers to pay an advance interest or collateral fee before receiving the loan funds, New York Daily News reports. The companies usually set up temporary websites and ask consumers to pay fees by wire transfer or prepaid debit cards, making the transactions difficult to trace or reverse.Learn more about Credit & Lending