We all know what is a payday loan and its benefits. There is no doubt that liquidity of money is necessary for the financial development of a country and direct payday loans do the same. Cash advance loans or payday loans keep the money flow in the society and catalyze the growth of the economy. However, there are a number of minor and major risks associated with direct salary loans.This article highlights the main troubles associated with direct cash advance loans and its solutions.
Risks Associated With Direct Payday Loans
The main risks associated with salary loans are as follows:
· Online direct advance payment loan cheats
· Hidden charges
· Over deduction of money from the bank account
· Misuse of vital information
Online Direct Advance Payment Loans Cheat
A number of cases are reported in the US alone regarding online direct payday loans cheats. Let us check the main types of online advance payment loan cheats.
· Withdrawing extra amount of money from the bank account
· Misusing vital data
· Internet bank account hacking
While applying for online cash advance loan, the applicant has to transfer the net banking details. On the repayment date, the money will be auto withdrawn from the account. In some cases, during the auto withdrawal lenders may withdraw more money than actually required. This may happen because of the software errors or rarely because of malpractice. As you transfer, vital information to the lender through the website, hackers could easily steal vital information regarding your bank account if the website does not have security certificates. Always ensure that the website is safe and posse’s security features.
When you apply for a direct payday loan of ‘x’ amount, you receive an amount equivalent to ‘x-y’ or when you have to repay the amount you will be charged ‘x + y ‘. Are you amazed about the constant ‘y’? That is the hidden charges subtracted when you receive the amount and added when you repay the borrowed money. In most of the states, it is not mandatory for an advance payment loan lender to demonstrate the processing charges, service fee, and a number of other miscellaneous charges. These charges are high, if you approach an affiliate of a direct payday loan lender.
Over deduction of money
This is the other risk associated with direct salary loans. This mainly happens due to the software issues, as in most of the advance payment loan companies, loan due alerts are generated by the softwares which remind the agents to deduct money from the customer’s account directly, if they have not paid the pending amount. Always approach a lending company that has 24 hours support as the support team can help you overcome this problem.
Misuse of vital information
There are many sites in the internet that offers direct payday loans. Unfortunately, a recent survey done by a famous economic magazine reveals that around 3% of them are fake and designed to receive the vital information of the customers. If you would like to apply for a payday loan, always check the history of the company and contact the customer care to ensure the lender is genuine.