| BOCA RATON -- Payday lenders all over the country | | | | around the world. So, there is no way to track these |
| are using the technology of the Internet to move | | | | companies down if they make unauthorized |
| their check cashing stores from the street corner to | | | | withdrawals. |
| the World Wide Web. The Internet gives customers | | | | According to Consumer Federation of America (CFA), |
| the relaxation of getting payday loans in the comfort | | | | loan borrowers are typically hit with a 650 percent |
| of their own homes. But, there are many catches to | | | | APR's. Most of these sites can cost up to $30 per |
| be aware of when it comes to these companies. | | | | every $100 borrowed. The growth of these payday |
| According to BankRate.com, these sites require a | | | | loan sites are astronomical and causing major |
| startling amount of personal and financial information. | | | | problems with law enforcement officials. |
| They require your Social Security number, a driver's | | | | states many surveyed lenders automatically renew |
| license number, your mother's maiden name, a home | | | | loans by electronically withdrawing the finance charge |
| address and employment information. You also have | | | | from the consumer's checking account every payday. |
| to give them your checking account and bank routing | | | | If consumers fail to have enough money on deposit |
| number. | | | | to cover the finance charge or repayment both the |
| The most important part to watch out for is giving | | | | payday lender and the bank will impose insufficient |
| them your bank account information. By doing so, | | | | funds fees. |
| these lenders have access to your account and | | | | In order to avoid using these types of companies, |
| make unauthorized withdrawals and say they are | | | | people are urged to seek payday advances from |
| collecting owed funds. In some instances, these online | | | | their employer, put off purchases, put a percentage |
| payday sites are not even in the United States. Many | | | | of money into a savings account every pay check |
| are in the Caribbean islands, Canada and elsewhere | | | | and create a budget. |