Millions of Americans are finding out that the online payday loan they took out was provided by an illegal lender. These thieves have duped consumers into paying exorbitant interest rates and sky high fees on loans — robbing them of their hard-earned cash.
Deterring theft,protecting consumers
In a dramatic shift of power, Consumer Financial Advocates has launched a web service aimed at putting illegal, online lenders out of business and helping hard-working Americans recover their cash, up to $1,000 per loan. The secure, easy-to-use website gathers a borrower’s loan information, establishes his or her eligibility for a refund and then contacts the financial institution to facilitate the loan reversal. This essentially recovers interest and fees, ending the obligation of the individual to repay the loan.
“This is a life changing service that on average will essentially put the amount of the original loan back in the hands of the borrower without any further obligation to pay the principal,” said Buckley Carlson, a spokesman for Consumer Financial Advocates.
“Through LoanReverse.com, we are succeeding where the government has failed; putting the squeeze on illegal, online predatory lenders, putting cash back into the pockets of these unwitting victims and helping them to identify alternative and affordable legal lenders. All in a process that takes about five minutes per loan.”
Carlson added that https://LoanReverse.com will essentially be obsolete after a few weeks once the illegal online loan industry has been closed. “Time is ticking for people to recover their money as the third-party clearing houses that coordinate payment transfers are going to wake up and not accept transactions from these illegal lenders that hide online in a shadowy world that cons more than $40 billion annually out of hard working people.”
Understanding illegalonline payday loans
More than 43 million online payday loan applications are submitted every year — that’s 120,000 per day. However, not all payday loans are equal. According to research by Pew Charitable Trust, approximately 90 percent of online loans are illegal, meaning the lender is not licensed in the state it is doing business, charges interest rates above state laws or is violating loan rollover regulations.