Do online loan companies typically have many complaints?


Quick Answer

There are many complaints against online lenders, according to USA.gov. These complaints include companies that don't follow state or federal licensing laws, ignore caps on interest rates and use unfair debt collection practices. A fraud victim of such a company should file a complaint with his local law enforcement agency.

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Full Answer

Many of the worst offenders from online lending websites are payday lenders. However, online loans for car titles are another problem area. These high-risk lenders charge up to 10 times the amount of a normal lender for up to half the value of the vehicle. Some of these lenders target homeowners by offering loans through a Community Reinvestment Act, which the government states does not exist.

Some consumers make complaints of scam telephone collection calls that begin after completing an application for an online loan or credit card. The callers identify themselves as from the FBI, a law firm or the Federal Legislative Department, or as attempting to collect a debt for a lending agency. The scammers often have personal information, including the victim's Social Security number, and demand payment using a prepaid credit card.

To avoid becoming victims of these crimes, a consumer should check his bank account regularly and avoid giving his Social Security number online or over the phone unless he initiated the call. He should also avoid completing loan applications received by email.

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