What You Should Know About Online Lending Services
Many people are in need of fast cash, and online loans can be tempting. You could conceivably get the money overnight, without a credit check. But we at the Loris Law Firm think you should get some facts before you sign. It never hurts to consult experienced Mobile AL attorneys when you need bankruptcy representation.
Do your homework
It never hurts to do some research before you do a deal with an online lender. While many online lenders are reputable, others have more of a “fly by night” image. Do a Google search and check out the online reviews. Hear what other consumers are saying about them. Read any news articles you can find. See if they have a profile at the Better Business Bureau and go through it. Glassdoor reviews are also helpful for getting a peek inside the business. If the lender is problematic, bankruptcy attorneys have probably dealt with it before.
Interest rates
Loans from online lenders tend to have extremely high interest rates. Rates of up to 300% are not abnormal, and there have been reports of some sites charging 1000%. The interest typically begins to accrue right away, and while payments may be spread out, a borrower may end up paying more than twice the amount borrowed.
Bank accounts
Typically, online loans are connected to a client’s bank account. The client automatically gets the loan money in the account — and then the payments are automatically withdrawn. Without a steady income, this can pose clients huge problem.
Consequences
Clients are often invited to go deeper in debt, and their information may be sold to other brokers. Loris Law Firm has had ample experience guiding clients of online lenders through bankruptcy proceedings, which may become unavoidable.