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