Payday Loans Are All Over These Days

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It seems to me that payday loan bids are all over these days. Across the Unites States, there are enormous numbers of people plainly living payroll to payroll. From stores nearby to the Internet, the payday lending business is thriving. But what are payday loans? Are they as atrocious as some people convey? Payday loans can be very costly. They are a relatively small amount of money given at an immense percentage of interest on the arrangement that it will be repaid when the borrower receives their next paycheck. According to Greg McBride, a chief financial analyst at Bankrate.com, he claims in the CNBC news article “More payday lenders than McDonald’s? Some Recovery”, that payday loans are one unplanned expense away from being in…show more content…
The article “I Applied For An Online Payday Loan. Here’s What Happened Next” written by npr (national public radio) reporter Pam Flessleer, wrote about her disastrous experience! In the development of reporting her story earlier in the year she logged into a site called eTaxLoan.com and filled out an application. She asked for $500 and made up an address, name, and social security number to be safe , although entered her real phone number. She stated that the website demanded more precise information- a bank account number and a routing number. She made that up too. In animosity of the fake data, she got feedback in less than 60 seconds. “Congratulations, Tremont Lending has been selected as your lender and you have been pre-approved for a loan up to $750.” If Pam requested to obtain $750 for a week, she would have to pay $225 in interest. Of course, she did not accept the loan. But her phone rang within just a few minutes. It was the guy from Tremont Lending, calling all the way from South Dakota. She let him know she was a reporter and did not really want the loan, hoping that would be the end of it. Pam Flessler explained further in her article that she began to receive dozens of calls within months. One guy contacted her and told her “Mary” has been approved for a loan up to $5,000 - 10 times what she originally demanded for. It turns out that ETaxLoan which claimed to be a secure site, had many companies unconnected to the website who were able to
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