3 Common Complaints About Payday Loans

In the recent past, the number of Americans who apply for same day loan has grown significantly. Looks like that this process is not going to slow down in the near future. Several states have made rules to control the same day loans sector. This was in response to increasing consumer complaints and some allegations made by media reports. In the present scenario, the payday loan industry does not have a high complaint ratio, according to a report it is less than 4%. In other words, you can say that the satisfaction rate is 96% in this sector. If you are interested in payday loan, you are supposed to find a genuine money lender.

Licenced Money Lender

When you read about the complaints regarding payday loan products, you may think that these are related to unnecessary hike interest rates or slow money lending practices. It may be about collection harassment, but much to your surprise picture is entirely different. I am saying this based on complaints, which were registered with Attorney General’s office, better business bureau and Federal Trade Commission.

Three types of complaints filed by consumers

Cannot increase their weekly payment

Based on consumer complaints, it is found that it is easy to apply for a loan and get instant approvals. This was found that moneylenders do not provide an easy way to increase the repayment amount. Initially, you may think that low weekly payment cannot be a valid reason. This can be a problem when you want to pay your loan earlier than it is scheduled. This is also a good way to avoid additional interest charges. They find it difficult to complete this procedure online. They have to call the customer service agent and then follow the process to alter the payment terms.

Late payment fees

The second most complaint is about late payment fees. Moneylenders charge a late fee; this is same like credit card companies charge for receiving money after the payment date. Late fee charges can be anything around 15% or $ 15 on the payment of hundred dollars. The credit card industry is also getting similar complaints in which they charge up to $ 40 for a payment of $ 40. This equals to hundred percent charges as late fee. For same day moneylenders and credit card industry late fee charges is a significant source of income.

Do not have 24-hour support

The third complaint is that moneylenders do not provide 24-hour support system. Most of the companies offer online services and they accept loan applications 24 hours a day and seven days a week. They accept applications round the clock, but when consumers complain or they need live customer service to satisfy their queries. They do not find live telephone support or customer support to solve their problems. Moneylenders only have a few chat hours for their customers.

Now you are aware about the most common consumer complaints about money lender. You can take a wise decision to avoid them by taking the right preventive measures.

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