Troublesome aspects of Payday Loans
World of payday loans is not a garden of Eden in any form. A lot of money exchanges hands in this business and where there is cash flow there will be people who will step out of the legal practice and pursue greater profit through illegal practices. This is not the case of all payday lenders, but there is alarming number of those that fit this description.
Those illegal practices involve threats, pursue of wrong repayment amount, misleading info and so on. The effect of those practices can be rather different, in some cases it leads to poor outcome to customers, and in other cases it can cause great loss and even physical damages.
Threats made to borrowers involve text messages and similar long range threats, and direct face-to-face threats. Both of those are clearly against the law, but greed makes people capable of anything. In some extreme cases ( and don’t mislead yourself with believing that they don’t exist, they do and not in small number ) borrowers will get beaten in order to convey the message about what will happen if he lingers longer with his loan repayment.
Once you have fallen in the clutches of some payday lenders they will use the advantage and they attempt to use you. If you fall behind on payment or sometimes in middle of repayment period they will ask for larger repayment amount than it is originally. They might go and give you several reasons for that increase, but in reality they are trying to abuse your place as borrower. It goes without saying that this is against the law, and you should never comply with these terms.
Pay attention on lenders
Some more aggressive lenders will use threats and power to make you repay more than it is agreed. In that case you should try to cut all ties with them and if it isn’t possible go to police or take matters in your own hands and teach them how big a mistake it was to threaten you.
Some payday lenders will give you false info about extension of repayment period or what happens if you don’t repay your debt in time. Some will increase interest rate after such things, but they will not explain that to you at the creation of loan contract. Then others might seek reparations in the form of collateral damages which will involve sequestration of your property. You should ask about all specific info when you go to take that loan, and once you gather that info don’t accept any other conditions they reveal later.
Consequences of illegal activities done by payday lenders are wide in there effect and they range from small inconvenience to greater financial losses and in some cases physical injuries. My general advice would be not to take payday loans, but I do realize that sometimes they must be taken to fill the gaps in budget. If you have to take such loan, make sure to ask about everything and create such a deal in which you will not be cheated later.