Better Business Bureau scam alert
In an effort to keep the public informed, Better Business Bureau serving Eastern North Carolina offers monthly Scam Alerts:Consumers across the country have reported being hit by a scam e-mail that appears to be from StubHub. The phony e-mail states that the consumer's credit card is being charged for two tickets to a boxing match. The e-mail asks consumers to follow a link to log in to their account. BBB recommends consumers delete suspicious e-mails immediately and avoid clicking on any questionable links or attachments, as this phishing e-mail is an attempt to steal personal information from consumers.
BBB cautions consumers to beware of a telephone scam related to overdue payday loans. Consumers are receiving calls from people alleging to represent agencies, including the FBI and law firms. The caller claims to be collecting debts from well-known companies, but will not provide any information about the payday loan. The caller also attempts to instill fear by threatening the consumer with jail time and legal actions. The Fair Debt Collection Practices Act prohibits debt collectors from using abusive, unfair, or deceptive practices to collect from consumers.
BBB has been alerted that consumers are receiving calls from scam artists who claim that there is a virus on the consumer's computer. The scam artists tell the consumer that they can fix the virus and requests upfront payment. Consumers allege that the scam artists use high pressure tactics and make it difficult for the consumer to end the conversation. BBB reminds consumers to never provide any credit card information or other personal information to an unknown caller.
BBB cautions consumers to beware of an e-mail that appears to be from a follower on Twitter. BBB received an e-mail that read "I saw a real bad blog about you, you seen this?" The message was followed by a link. Consumers who click on the link are taken to what appears to be the Twitter login page.
better business bureau and payday loans - News
BBB cautions consumers to beware of a telephone scam related to overdue payday loans. Consumers are receiving calls from people alleging to represent agencies, including the FBI and law firms. The caller claims to be collecting debts from well-known
But for those looking to make a fast buck, tough times can also make for easy prey – especially when a payday loan borrower can be tracked down. Across the country state attorneys general, the Better Business Bureau, law enforcement officials and
The scammers claim to be representatives or officers from payday loan companies and call demanding payments on loans in order for the victim to avoid being arrested or sued, the statement from the BBB said. One of the two local victims,
The Better Business Bureau calls this a classic advance fee loan scam. The BBB said Casa Loans has an F-rating and uses a Miami address only to make the consumers think it is based in the United States when in fact it is in Canada.
Do not worry, there is a loan product that is custom made for those high risk bad credit borrowers like yourself , the guaranteed high risk personal loan, commonly known as a payday advance loan or simply payday loan. While the BBB is a really great
Payday Loans | First Person: Why I Avoid Online Payday Loans
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During my undergraduate years, I experienced several situations that tempted me to consider online payday loans. I needed money urgently to pay college expenses. After thoroughly investigating the payday loan programs, I decided to avoid them.
Online Payday Loan Scams
Unfortunately, many of the online payday loans I encountered were simply scams. Most of the companies were set up as phishing schemes to gather and use personal information. I discovered hundreds of companies that were obviously only created to steal identities and drain accounts. They demanded social security numbers along with a name, address and proof of income. Many of these sites also requested information on checking or savings accounts which gave them direct access and posed an enormous security risk.
I discovered thousands of complaints about online payday loan companies on the Better Business Bureau and Federal Trade Commission (FTC) sites. During my search, I found that the FTC was investigating several companies for enrolling consumers in additional programs without their consent. I actually found several of the applications mentioned in the FTC investigation. The companies automatically enrolled people into phone and discount programs with recurring monthly charges.
High Fees and Difficult Terms
Amid a sea of online scam sites, there were a few legitimate payday loan companies. However, even the legitimate companies were dangerous. The companies charged high fees to take out the loan, and the terms were difficult. The fees ranged from $25 to $150 depending on the amount of money requested. In addition, the fees grew exponentially if the loan was not paid back immediately.
Although most sites did not reveal the actual annual interest rates, it was not difficult to calculate them. Most payday loan companies charged $25 for every $100 taken out in a loan, but I also found companies that charged $35, $40 and higher amounts. The annual interest rates varied from 650% to 1,000%. In addition, some companies could have automatically renewed the loan without any notification.