Thursday, August 9, 2012

Payday Loan Horror Stories

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.

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.

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 0 loan, and agreed to pay it back. They set up automatic payment and thought they could expect the 0 paid in full when they received their next paycheck. When the time came to pay it back, the company only withdrew to cover the fees.

Why did they do that? Because if they only take the for the fees it allows them to charge an extra cash advance fee for extending the loan two weeks. It keeps going on and on until the borrower pays back the 0 in full. The customer has to actively contact them and tell them they want it paid full. Otherwise, they assume

0 Loan, 0+ in Fees.
This story is very similar to the last one, they withdrew 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 Over the course of 4 months 0 was withdrawn from the checking account but only was used. When the customer asked why they did that the 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.

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 this company.

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 - 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
Cash advance ripped me off money out of my account that was not agreed upon. Minneapolis Minnesota Payday Loan (This poor guy had terrible luck)
Whatever ripoff artists Internet

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