Payday loans over the phone are a convenient way to secure a quick loan. But it is important to know what to expect from these short-term financing options. The high fees and interest rates can put you in a debt trap. Fortunately, you can take steps to stop your payments and get out of debt.
First, payday loans are often prohibited in some states. However, if you live in a state where these kinds of loans are legal, make sure that you are aware of your rights and know how to avoid a scam. It is a good idea to check with your local consumer protection agency and your state’s attorney general to ensure that you are protected.
Secondly, a payday loan is usually for a small amount. It is also usually due in full within 14 days. If you find that you have trouble repaying your loan, you can ask your creditor to extend the time frame or modify the terms of your loan. You may also want to contact a consumer debt counseling agency.
Third, you will need to provide your personal information to your lender. This may include your Social Security number, your bank account information, and your home address. Your lenders will likely need to review this information before deciding whether you are qualified for a loan.
Fourth, if you feel that you are being harassed or threatened, you should take action. Scammers often call victims’ homes and threaten them with physical violence. They also instruct them to send money through courier services or overnight services. Some also claim to be collecting debts for legitimate companies like U.S. Cash Advance and other law firms.
Lastly, be wary of callers who try to convince you to sign up for their advance fee loan. These fraudulent services use the phone and the internet to obtain your personal information. One example is a scam where the caller promises to guarantee you a government grant. Other scams involve callers who call you from your place of employment to collect debts. Another variation involves callers who promise to provide you with information from a library.
Finally, make sure to shop around for the best loan. Check out lenders’ APRs, rollover terms, and additional fees. Also, make sure you know exactly how much you will pay, so that you do not end up in more debt than you originally borrowed.
In addition to calling to report a fraudulent lender, you should also file a complaint with your state’s Consumer Protection Agency and local law enforcement agencies. Many states have enacted strict regulations on the payday lending industry, including a cap on the interest rate and fees that can be charged.
Before taking out a payday loan, you should have a clear understanding of the financial situation you are in. If you are facing problems with your finances, you should seek help from a debt counselor and ask your creditors to modify the terms of your loan.
