Kansas City Payday Loans: How to Avoid Loan Fraud

There may be an unscrupulous payday loan lender waiting to take advantage of you. Don’t let them. Learn how to avoid Kansas City payday loan and cash advance loan lending fraud and keep your money safe.

While there are many Kansas City payday loan cash advance lenders who have good reputations, there are many who don’t. Since payday loans do not require a credit check, unscrupulous lenders sometimes take advantage of people who need cash immediately. From posing as legitimate businesses to harassing customers for late payments that they do not owe, these are lenders to avoid.

Signs of Lending Fraud

There are a few signs that you can look for to avoid being entangled in a Kansas City cash advance loan lending fraud. If you have recently acquired a cash advance loan but are receiving calls that payment is due in full, you are probably dealing with fraud.

– Never give your personal information to someone over the phone like address, or banking numbers.

– Verify the caller’s contact information, address, and so forth. Check to see whether the information matches your lending company’s.

– Request that the lender provide you with their state license number. A legitimate company will have no problem supplying their state license number. Compare it with known state licenses.

– If the caller tells you they are your lender but asks you to confirm that you are the correct person by supplying personal information, hang up.  Call your lender to confirm that they requested the information.

kansas city payday loans

When using Kansas City payday loans, following these responsible practices will keep you and your finances safe. Be sure to visit a payday loan cash advance Kansas City lender today if you don’t already have a loan but need one.

Summary

This described how to avoid payday loan and cash advance loan lending fraud in Kansas City. If you are not armed with the knowledge described above, unscrupulous payday loan lenders will take advantage of you.

Looking for a Kansas City payday loans or cash advance loans in Kansas City? Call Waldo Financial today at (816) 333-6800.

Keep in mind that there are many payday loan cash advance Kansas City lenders who have good reputations, there are many who don’t. These are a few signs that you can look at to avoid being entangled in a Kansas City payday loan or cash advance loan lending fraud. If you have recently acquired a cash advance loan but are receiving calls that payment is due in full, you are probably dealing with fraud.

Kansas City Consumers Want Payday Loans

This describes Kansas City payday loans and the desire for consumers to have access to small dollar consumer loans.

Over the last year, the Consumer Financial Protection Bureau (CFPB) has collected more than one million comments submitted to the agency ahead of its proposed small-dollar lending rule that would regulate Kansas City payday loans and other small consumer loans. Despite evidence that consumers want and need access to small-dollar loans, the head of the CFPB – Richard Cordray – testified before the House Financial Services Committee that the agency will double down on its plans. He made no acknowledgement of the negative impact of banning payday loans.

In his testimony, Cordray pointed out that 14 states currently ban payday loans and these consumers “seem to get by just fine,” but the truth is there is no such thing as a state with no payday loans. An estimated 11,600 consumers in these 14 states go online seeking a payday loan every day with about 2.7 million payday loan applications submitted from these states per quarter.

Consumers Seek Banned Payday Loans

Kansas City payday loansTypically, consumers in states banning payday loans turn to lenders illegally marketing loans and in some cases lenders based offshore. The proposed rule to limit access to legal payday loans would have no effect on these loans and do nothing to protect borrowers.

About one-third of all payday loan complaints come from 14 states that ban payday loans. This means that consumers in these states are seeking loans from unregulated and largely illegal lenders instead of working with local, regulated and licensed businesses.

The CFPB, which was created in 2011 in response to the financial crisis and recession. In that time it has only received 17,207 complaints about payday loans. Meanwhile, about 550 million payday loan transactions have occurred since 2011. This means the CFPB receives on average just one complaint for every 32,000 payday loans.

Even though there are states that do not allow regulated payday loans, it is clear that consumers find other ways to access small-dollar loans.

Consumers without access to this lending industry make more complaints about illegal debt collection and lenders, bounce more checks, and file for bankruptcy more often.

When used responsibly, Kansas City payday loan providers like Waldo Financial give consumers access to credit they may not have otherwise have access to. This helps them avoid serious financial repercussions like bad credit, disconnected utilities, foreclosure, repossession, bankruptcy, and bank fees.

Kansas City Payday Loans Provide Small-Dollar Credit

This describes Kansas City payday loans and how they provide small-dollar credit to consumers that need cash.

Consumer Financial Protection Bureau (CFPB) Director Richard Cordray recently testified before the House Financial Services committee about his agency’s plan to adopt strict regulations on small-dollar loans.

Despite receiving five years’ worth of consumer complaints that show Kansas City payday loans have a far lower complaint rate than other products like mortgages, student loans, credit cards, and debt collection, the CFPB fails to acknowledge the real need among consumers for these small-dollar loans.

In his testimony, Cordray noted that 14 states currently ban payday loans. He said that consumers in these states “seem to get by just fine.”

The truth is every day, nearly 11,600 consumers in these 14 states seek payday loans online. In the 4th quarter of 2016 alone, about 2.7 million payday loans were requested from consumers in these same 14 states.

kansas city payday loans provide small dollar consumer creditIn states that ban payday loans, consumers often turn to illegal payday loans marketed illegally by U.S.-based lenders or offshore lenders.

Even when payday loans are banned, the demand does not decrease. Research indicates these consumers face greater financial strain by bouncing more checks, filing more complaints about illegal loans and debt collectors, and filing for bankruptcy more often, the Federal Reserve has found. States like Washington and Montana – states which have recently adopted restrictions on small-dollar loans – have reported similar consequences for their consumers.

According to the CFPB consumer complaint portal data, about one-third of all payday loan complaints originate from the 14 states that ban these short-term loans. This means a large amount of these complaints are against unregulated, unlicensed, and largely illegal lenders. While legal and illegal lenders are lumped together in this data, the CFPB still reports that payday loan complaints are down 28%. These complaints account for just 1.5% of all complaints the CFPB has received.

At Waldo Financial, we have advocated for a simple fix to protect consumers from unlicensed, illegal lenders: a national registry of regulated lenders. While this solution was specified in the Dodd-Frank Act that created the CFPB, it has not been a priority for the agency. This registry could help protect consumers from cash-grab schemes that pose as reputable online lenders. Rather than attempting to lump in the actions of illegal payday loan lenders with law-abiding businesses, the CFPB should instead focus on stopping these offenders from taking advantage of consumers.

Waldo Financial licensed lender regulated by the Missouri Division of Finance. Waldo Financial offers Kansas City payday loans to the local community.

If you are facing a short-term financial difficulty, contact Waldo Financial to apply for a cost-effective Kansas City payday loan.

What Are Kansas City Payday Loans?

This Kansas City payday loans article describes exactly what type of loan a payday loan is and who is best suited for this type of short-term loan.

Payday or pay day loans are an often misunderstood form of lending. These short-term, unsecured loans offer credit availability and fast access to cash to all types of consumers, including those facing a short-term emergency, the self-employed who can’t easily document their income for a bank, and anyone who has trouble qualifying for a traditional bank loan.

Kansas City pay day loans can be made online or at a brick-and-mortar store and they are usually a low amount ranging from $100 to $500. Pay day loans Kansas City borrowers usually take out loans for about $375 to cover an emergency or pay bills. Because these loans are short-term, they are usually due 2 weeks after they are made or on the borrower’s next payday.

Fees for payday cash advances are usually advertised as a dollar amount per $100 borrowed, which may be $10 to $30 per $100. While it’s common to see this loan option slurred in the media for its high annual interest rate, it’s important to consider that an annual rate is irrelevant to most payday loan borrowers as the loans end after 2-3 weeks. With very short term loans, focusing on the dollar amount of the charge is usually more appropriate and makes it easier for borrowers to compare lenders.

Who Takes Out Payday Loans in Kansas City?

It’s estimated that 12 million Americans take out payday loans every year. While anyone may benefit from a short-term loan, these loans are often used by borrowers who have limited opportunities to borrow money from traditional lenders or credit cards with few assets and limited credit history. Many people who turn to pay day loans Kansas City lenders live paycheck to paycheck and struggle with significant hardship if there is even a small interruption in income or an unexpected expense like car or home repairs.

Qualifications for a Payday Loan

Payday loans typically have very easy requirements to meet:

* 18 years or older
* Steady source of income
* Active checking account
* No other outstanding payday loans

Payday loans are very straightforward and easy to obtain, offering borrowers fast access to the money they need in a matter of 1-2 days in most cases.

If you are facing a short-term emergency or just need extra cash to cover expenses until payday, a short-term payday cash advance can be a smart choice. Waldo Financial offers payday loans to consumers with competitive rates and an easy 5-minute application process.

This described Kansas City payday loans and who is best suited for this type of short-term loan.

Who Uses Kansas City Payday Loans and Why

This describes Kansas City payday loans and answers the questions: what are payday loans and why you should use them.

Payday loans are short-term, unsecured loans in Kansas City that give consumers fast and easy access to credit when they need it most. Pay day loans are used by people of all ages and backgrounds, but borrowers tend to be people who live paycheck to paycheck and face extreme financial distress due to an unexpected expense or disruption in income.

In general, pay day loans Kansas City borrowers are younger adults with an income under $35,000. These borrowers are employed and have a checking account, and may have access to mainstream financing solutions like credit cards or bank loans but lack the assets or available credit. Most borrowers use the proceeds from a payday loan for basic living expenses like rent, utility bills, groceries, and important car or home repairs as well as staying current on credit card bills.

While in Kansas City pay day loans are sometimes referred to as an option of last resort, many borrowers simply find them to be the lowest-cost solution to solve a financial emergency. Payday loans typically have fees of $10 to $30 per $100 borrowed with an average loan amount of $375. On the loan end of the scale, that means a fee of less than $40 to borrow money until payday and avoid higher borrowing costs or adverse effects like car repossession, utility disconnection and high reconnection charges, credit card late fees, and more.

While there is a cost to using a payday loan, the truth is many borrowers are able to improve their financial situation at a comparatively low cost by turning to a short-term loan.

Waldo Financial is a leading pay day loans Kansas City lender offering borrowers unsecured short-term loans at competitive rates. Loans are funded in just 1-2 business days to help borrowers get access to the cash they need to weather the storm and stay on top of bills until payday.

This described Kansas City payday loans. This article answered the questions: what are payday loans and why you should use them.