Payday loan companies are everywhere, not just physically in your local area but online as well. Now how do you choose which one to deal with?
(1) Verify payday lender license - Individuals who wish to verify the license of a payday lender within the state may do so by calling 1-877-RING-DFI (746-4334) or verifying a license online. Run a check with the Better Business Bureau (BBB) before getting the services of a payday loan company. You can do so by contacting the BBB in the city and state that the business is located in to find out if the lender is in good standing or not.
Additionally, you may do an internet search about the payday company’s reputation. All you need to do is enter the company's name followed by the word “scam” or “fraud” and you’ll get the results on your screen. How long has the lending company been in business? Chances are, the longer it has been doing business, the more reputable it is. You might want to avoid new payday loan companies, just to be safe than sorry.
(2) Consider Alternative Solutions – Borrow money from family or a friend who understands your financial situation. Ask your employer for an advance on your paycheck. Make payment arrangements on non-interest bills like telephone and utility bills. If you have hospital bills to pay, negotiate with the billing department for a feasible payment plan. Check out local organizations within your state that can help you with your financial situation. Consider living and spending on a budget that way you have enough for emergencies. Take note that payday loan may be a convenient short-term solution but may not necessarily be the right solution for long-term cash needs.
(3) Shop around – Compare payday lenders and consider those that offer the lowest fees and penalties. Contact several lenders for interest rate quotes because surely they are going to vary considerably from one lender to the next. Get the best rate available to you for your payday loan. Note that lenders usually charge fees on top of the interest being charged, so it is prudent to inquire about all the fees you are expected to pay per transaction. Consider all these factors when making loan comparisons. In addition to interest rates and fees, you might also want to consider the customer service a lender gives.
(4) Don’t borrow more than what you can actually afford to pay back based on your next paycheck. It is not wise to bite off more than what you can actually chew. Failure to make timely payments affects the interest on your loan and finance charges. You certainly do not want to be saddled with debts and penalties that you cannot afford to pay.
(5) If possible, avoid borrowing from more than one payday lender at a time. Doing so will only make it more difficult for you to repay the loan. In the State of Washington, it is lawful for a payday lender to refuse payment of an existing payday by obtaining a new payday loan from the same lender or his affiliate.
(6) Know your obligations as a borrower. This means taking note of when payment is due and being ready to repay the loan on time and in full. In the State of Washington, a borrower who is unable to repay his loan may request an installment plan with no additional fees, and a borrower who is already in an installment plan you may not receive another loan. Know the lender’s re-payment terms and this includes knowing how long you have to pay the payday loan back. Ask if there are pre-payment penalties for paying a payday loan off in advance. Most lenders don’t impose pre-payment penalties, so if the lender you are dealing with charges such fees, you are better off going someplace else for your loan.
(7) If you are dealing with an online payday loan company make sure that (a) they have a strict privacy policy, (b) the websites URL start with “https”. If it is missing the letter “s”, it means that the website is not secure and your personal information could be compromised. Visit the company’s "Terms of Agreement" page and take note of payments required, amount of interest, extra charges for missing a payment or hidden fees. If you have any questions call the company or chat online with a representative. They should be able to answer your questions straight to the point and without going in circles.
Protect yourself by getting a cheap payday loan. Other measures to achieve this include (1) checking out advertisements in local newspapers and using payday loan cut-out coupons for lower rates or fees; (2) negotiating on the price of your payday loan, the fee or interest rate, especially if you are dealing with a locally owned brick-and-mortar payday loan store; (3) getting a discount by referring a friend; or (4) getting a discount when you use other facility services the payday loan store offers such as check cashing, notary or faxing services. Discounts for referring a friend or for using other services apply only if the lender offers such promo; ask to find out.
This blog is not legal advice, but shares information on the law. We are living in hard times; people lose their jobs and many are struggling to make ends meet. Legalbargain.net gives back to society by sharing it’s knowledge and producing advocacy videos to put justice within the reach of those who believe justice is only for those with money.
Comentarios