LITTLE ROCK — Attorney General Dustin McDaniel issues a consumer alert to warn Arkansas consumers of the perils of predatory payday lenders operating over the Internet. A typical online payday loan begins by a consumer filling out an application online.
The consumer is then contacted by the lender by phone or by e-mail and is required to provide the lender with personal information such as a Social Security number, birth date and bank account number. The lender then electronically debits money from the consumer’s bank account to repay the loan. These loans typically have interest rates of 300% or more.
According to a Better Business Bureau release, a number of collection calls may be scammers. The con artists have used the names “First Cash International”, the “Financial Accountability Association” or the “Federal Legislation of Unsecured Loans”.
If you get one of these phone calls DO NOT provide any verifying information, such as your Social Security number or bank account number. Hang up or demand that the debt collector send verification of the debt in writing.
If you are having problems with an online payday loan or with a debt collector attempting collection on a payday loan, contact the Consumer Protection Division of the Attorney General’s Office, 1-800-482-8982.
Opinion, Pages 6 on 02/17/2010