Would you ever consider giving up all your personal information including your back account access to a stranger? That is what you do when you go for a payday loan online.
"These are parasitic lenders," says Ed Olander, a financial counselor for the U.S. Navy. He counsels countless enlisted men and women to avoid them.
The companies can be located anywhere.
"It could say Payday Loan of San Diego and operate out of another country," explains Olander.
Anonymity is only part of the problem. The interest rates can be astronomical.
One company, Ameriloans, says it's part of a tribal nation in Miami, Oklahoma, and thus doesn't have to follow California law.
Attorneys for the state claim the operation is a fraud. Despite a victory for Ameriloans in an appeals court, state officials aren't convinced.
A check of consumer web sites indicates how they deal with consumers. You can see some of those results in the related links.
Source: Sandiego6.com