Last week, NPR’s Planet Money blog wrote a story about what happens when a person applies for an online payday loan. The author reported that she provided false information, but was still harassed for months afterwards. The author didn’t need money, but if she did, it’s easy to see how someone could get suckered into taking a short-term loan with annual percentage rates upwards of 1,000 percent. She explains that “once you made that application, you basically sent up a red flag with them that you are someone in need of this money, and you need it on a short-term basis. That’s when the vultures come out.” You can hear the entire report on the NPR website here.
We hear stories like this all the time from our clients at LAF. The payday lending business is often predatory, and has gotten even worse with Internet payday loans. Consumers should be aware of these scams and protect themselves. Alan Alop, Director of LAF’s Consumer Practice Group, explains, “We now see payday loan sharks targeting the working poor, social security recipients, and college students. Once the payday people get their hooks into you, you often need a lawyer to get you off the hook. That’s where LAF comes in.” If you are a victim of one of these scams in need of legal assistance, call LAF at 312-341-1070 to request an appointment.