Bad Payday Loan Companies - Don’t Let This Happen To You!
There are companies that give everyone in their industry a black eye. It could be any reason, bad customer service, hidden expenses and fees, or not delivering what they promised. The payday loan industry is no different. Many companies promise money fast, but don’t deliver. They tell you about the fees, but don’t tell you how much they’ll charge if you are late paying the money back.
Have you had a bad experience getting a cash advance? Feel free to tell us about it. Leave a comment below telling us what happened.
Payday Loan Horror Stories
We did some research, and there are dozens of companies that have complaints registered against them online at Rip-Off Report. Some are understandable, a rude employee or bad customer service happens with almost every company. Employees are human and may just be having a bad day. There are more extreme reports of companies repeatedly withdrawing fees from people’s bank accounts and other deceptive practices. Here are a few of the more outrageous cases.
AmeriLoan.com – Repeated deductions from bank account
A customer complained that multiple payments were taken from their checking account for over 6 weeks. The customer had taken a $300 loan, and agreed to pay it back. They set up automatic payment and thought they could expect the $390 paid in full when they received their next paycheck. When the time came to pay it back, Ameriloan only withdrew $90 to cover the fees.
Why did they do that? Because if they only take the $90 for the fees it allows them to charge an extra $90 fee for extending the loan two weeks. It keeps going on and on until the borrower pays back the $390 in full. The customer has to actively contact them and tell them they want it paid full. Otherwise, they assume
Read more about the Ameriloan.com Rip-Off Report
PersonalCashAdvance.com - $300 Loan, $350+ in Fees.
This story is very similar to the last one, they withdrew $90 from the customers checking account each pay period. The difference here is that they didn’t allow the customer to pay it all back. Over the course of 4 months $400 was withdrawn from the checking account but only $50 was used. When the customer asked why they did that the PersonalCashAdvance.com representative to them that they (the company) was not responsible for what the agent told them and wouldn’t let them talk to anyone higher than the store manager.
Read more about the PersonalCashAdvance.com Rip-Off Report
CashNetUSA.com – 39 Rip-Off complaints. 3 in the last 2 weeks.
Sometimes companies make a mistake, or in this case, 39 of them. It’s hard to find something good to say about a company that has this kind of blatant disregard for their customer. The complaints run the gamut, but here is what people are saying about CashNetUSA.com.
• Sneakily stole money from my account! Online Internet
• Deceptive Business Practices Lake Bluff Illinois payday loan
• This Company just call me with an extortion voicemail and when I questioned him he said never call be again at the number he left on my voicemail Internet
• This Company is a 100% Ripoff - BEWARE BEWARE BEWARE Chicago Illinois Payday Loan
• Fraud, Extortion, and Fake Loans - the CashNetUSA way of doing business. Chicago Illinois Payday Loan
• Watch out for forced extensions Chicago Illinois
• took money out of my account it shows on my bank statement on sept. 6, 07 30.00 50.00 90.00 100.00 and 150.00 Carson City Nevada
• United Cash Loan ameriloan cash advance ripped me off money out of my account that was not agreed upon. Minneapolis Minnesota Payday Loan (They actually named CashNetUSA, and AmeriLoan. This poor guy had terrible luck)
• Cashnetusa And Omega Whatever ripoff artists Internet
If you’re interested in what all 39 complaints are, here is the full Rip-Off report on CashNetUSA
Do you have a story about a bad experience with a payday loan company? Please tell us about it in the comments below.
Tags: ameriloan, ameriloan.com, cashnetusa, cashnetusa.com, payday loan, personalcashadvance, personalcashadvance.com
December 13th, 2008 at 5:30 pm
My comment is if you need a payday loan,go to a place like amscot.your local payday neighborhood loan company.WHERE YOU KNOW WHERE IT IS,AND YOU DEAL WITH THEM IN PERSON.I myself have dealt with these on line payday loan companies.I regret it deeply.It started out this way.We were maxed out in our credit cards.we had to pay rent and electricity.I did a search “help with rent”I found a company called “cashangels”kind of funny if you think about it.well anyway,I went to these people for a loan thinking they would take it out next payday.like amscot.so I had to submit my bankrouting number and my checking account number. they approved for 200.00 but I had to pay 260.00 next payday.I thought” a little high but i need the money”.2 weeks later only 60.00 was taken out.I thought “HMmmmm”why only 60.maybe they will take out the rest the following week.well i called to inquire about this and they said i have to call to have the whole thing taken out.so to make a long story short. Someting else came up. I took another loan out and pretty soon.I had 5 loans with 60.00 debited my account for each loan. (300.00) which lead to more loans.to cover the financing fees.I was flat broke every 2 weeks it was horrible. I finally had to close my checking account and reopen a new one.just so i wouldn,t be broke.and then the nastiness came woooooh.I was getting calls on my cell at work.I was getting e-mail notices.they even called my mom telling her that it was urgent to speak to ME. my plan of action is this.I am going to get an excellant tax refund I am going to use some of that money to go to an agency that specializes in payday loan debt.I will include the phone number in this letter.if anyone needs it.DO NOT DO WHAT I DID. LEARN FROM MY MISTAKE.If anyone needs a payday loan the best place is amscot or a place like ace cash express.what they do is this.they approve you up to 500.00 but you have to write and give them a check for the amount you borrow.on your next payday,you HAVE to pay the loan in full with a 10 percent interest fee.YOU CANNOT EXTEND .you just pay it back and get another if you need one.if you do not pay them they send in the check that you wrote to them at the beggining.amscot is good because they do not extend the loan after payday you have to pay them back.this forces us to better budget our money.it is aalso good because even though you wrote a check to them ,they do not have your routing number or account number.but an online payday loan does.with amscot you pay back the loan IN PERSON or you can choose to have them send in the check you wrote to your bank. It is not done electronically.these online pay day loans it is not so much the amount.It is more of there practice that hurts people.they wouldn,t be bad if they altered their practices.they make it very easy for us to get into a trap.where amscot has more payday loan restrictions. I am giving you all a number to a paday loan debt settlement company.these online payday loans are sinister because they do not have a definitive physical address.they only way to get in touch with them is by e-mail or phone.and naturally the phone numbers are 800 numbers.so you cannot trace them. here is that number 1-800-###-####
December 14th, 2008 at 11:06 pm
Vincent, thank you very much for your very detailed experience. We’re sorry you had a bad experience with online payday lending. Everyone needs to be very careful when dealing with any online transactions, payday or otherwise. Also, we had to remove the 800# you left. We have a policy of not leaving phone numbers in blog comments.
We advise everyone to look on ripoffreport.com, it is very helpful and can definitely assist you in avoiding a bad payday lender.
January 28th, 2009 at 8:41 pm
I run a small company with 4 store locations and a small internet operation out of Illinois for clients in the state of Illinois. My focus is generally on the Internet and I have some suggestions for anyone who is looking to or going to deal with any short term lending companies.
1.) Be sure on a multiple payment loan that your payments are principal and interest. (This way the loan will be paid in full as outlined in the contract)
2.) Ask questions!!! (While I work with all of my operators to know and explain how the loans work sometimes things are missed, it happens, it is your job to know what you are agreeing to before clicking ‘I agree’ or signing on the line.)
3.) Make sure the company is licensed to do business in your state. (This is so you are protected under your states laws and they are set up to protect you, most websites will display a copy of a license or a link pointing you to where you can verify this)
4.) Do not go to a company that is based off shore, or that has a line in the contract stating; ‘this contract is assumed to have taken place in Spain’ (or some other country, Spain is just a random example). These loan company’s will not normally follow US laws.
5.) Be responsible, do not borrow more than you need. (It is always an unwise decision to borrow from one company to pay another’s payment. However, it is not always a bad idea to borrow from company A to pay off company B completely if the rate or terms are better for you).
6.) Know the rates and ask questions about them before submitting an application. (Many short term lenders are able to see when you have applied with other short term company’s and may jack the rate up or deny the loan if they see you have submitted a large number of applications recently (This goes for internet or store front company’s).
7.) If for what ever reason you cannot make the payment or are going to be falling behind, contact that lender immediately. (I know that many lenders may not help or care, but in the case of my company we are almost always willing to help or work something out.)
8.) Changing your bank account, not answering calls and not attempting to work with a lender that is trying to get this taken care of is almost always a bad decision. (A good number of companies have started negative reporting to credit agencies and this can hurt your future attempts to do anything from open a new bank account to buying a house or car for 7 years.)
9.) Do not lie on an credit application, not only is it against Federal laws but it also does not help you or the lender get you taken care of. (I have so many people lie to my over the phone and to my face where I catch them in their lie, and even though they could have been a good client and I could have helped them I am unable to at that point)
10.) MOST IMPORTANT!!! Pay the loan off as soon as possible. (Know if you need to call to get the loan paid off or what you need to do, but stay on top of it and get it paid off! These are high interest loans because they are short term and the processing costs can only be cut by so much.)
Please keep your eyes open and borrow responsibly, we are here to serve you the borrower. And as a side note be calm and collected when you call, kindness, honesty and respect go a long way with people who are working to help you.
Charlie
http://www.fiatfinancial.com