Warning: Fraudulent Payday Loan Brokers

Payday loan consumers should be watchful of swindlers, who act as middlemen. Complaints have been severally received concerning rip off payday middlemen.

The way it happens, money will be withdrawn from clients’ account, which is received by middlemen most times without the customer being aware they’ve authorized the payment. Many at times, it is discovered that no loan is provided while the customer’s bank account has been charged a high fee many times. Payday loan consumers are hereby warned to be vigilant.

Online brokers take the money and offer to find the client the best payday loan available. Usually they charge anything between $50 - $80 to do this, however the fees can charged up to three or more times. Most times consumers are not aware they have given their approval for a payment or that they’re going to be charged.

In one particular case, a man was charged $700 in fees for a loan of $100 that he took out. Cases of this fraud are reported many times a day and are on the increase. These so-called middlemen operate a sophisticated organization and are resourceful. Even as consumers are warned to be careful, more needs to be done at the regulator and industry levels to safeguard customers who may already be at risk.

Payday loan brokers involved in finding loans for consumers usually make their charges known on their websites but some of them make no first mention of charges.

Consumers are of the opinion that lead generators and brokers should be much clearer on their websites about charges and refunds as well as letting consumers know that they are brokers, not lenders.