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 Posted: Tue Jan 22, 2008 3:04 pm Subject: What makes it confusing!
Latest Blog Post : http://frogpatch.yesdebtfree.org |
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We are constantly trying to identify PDLs. Here is an article of about their tangled web!
| Quote: | Internet Payday Lenders Difficult to Identify
The online payday loan industry is a confusing mix of lender sites, referral sites, and layers of click-through entities. Consumers who click through links on referral sites may have no idea who is making the actual loan or collecting their personal information.
A consumer clicking on moneybyfax.com ends up at the application page on instantcashusa.com. A visitor to internetfastcash.com clicks through to paydayconnection.com. A borrower who starts at paydayadvanceonline.com encounters paperwork giving AccessEZ Cash, Inc. authorization to withdraw payment of the loan and EasyCashNow.com the right to “initiate either the whole amount or portions of the amount until fully paid.”
Consumers could easily lose track of which web site they used to get a loan.
Some sites are payday lenders with a physical location in addition to making loans online, while others only lend via the Internet. Some are licensed in a state with lax regulatory requirements but located elsewhere. Many are referral sites that collect applications from potential borrowers and then hand them off to actual lenders for a fee (see Marketing Internet Payday Loans.)
These referral sites carry disclaimers, such as “Advance Cash Loans is not an online provider of online payday cash advances. We simply connect people seeking fast cashadvances with online providers of instant cashadvances so they can get the advancecash that they need as soon as possible. Thank you for visiting Advance Cash Loans. We wish you luck on your search for online payday cashadvances.”
Looking up web site addresses, or URLs, on domain registries often does not provide information on the actual owners of web sites. Several sites in the survey sample are registered through Domains by Proxy in Arizona, an anonymous service that hides the ownership and location of web site owners. In some cases marketing firms are registered as the domain owner, with a Vancouver company listed as owning several sites in the survey. FastBucks.com has a Virginia registry listing, despite the fact that the company is located in New Mexico.
Some consultants offer turnkey payday web sites that include the domain name registry, hosting, monitoring, a secure site seal, help with search engines and access to the Automated Clearinghouse Network. PDLMarketing LLC claims to have developed over three hundred “live” domains and expects to be the top payday loan lead generation source by the third quarter of 2005. Cash Now, a Canadian payday lender with offices in Pennsylvania, markets franchises to people who want to become storefront or Internet lenders. Washington, California, and Illinois securities regulators have halted Cash Now’s sale of franchises in their states.
Internet payday lenders may involve a complex set of interlocking company names for marketing purposes, loan servicing, and collections. A lawsuit filed in Texas against a Canadian consortium of lenders named multiple company names involved in one loan transaction. A pro-bono attorney assisting consumers filed a complaint with Kansas regulators about a lender apparently located in Kansas with a domain name registered in Nevada by a registered agent for foreign corporations.
Tracking down the real lender at a physical location is a difficult process for lawyers and regulators, much less for borrowers trying to contact the lender or resolve complaints. As noted in the website survey, companies making payday loans via the Internet are located outside the United States, making it even more difficult to exercise consumer rights, bring enforcement cases, or resolve disputes. |
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frogpatch
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Joined: 09 Apr 2007
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Posted: Tue Jan 22, 2008 3:40 pm Subject:
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:O
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tiffer0220
Joined: 14 Jan 2008
Posts: 89
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Posted: Tue Jan 22, 2008 3:41 pm Subject:
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LOL that didn't come out right, was supposed to be the smiley banging his head against the wall.
I now have a headache after reading that article LOL
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tiffer0220
Joined: 14 Jan 2008
Posts: 89
Debtcc Points: 1422
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Posted: Tue Jan 22, 2008 3:42 pm Subject:
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Great post Frog! I have been to some of those sights...that's how I got into the cycle. They draw you in so easily. 4 different pdls calling offering loans. When people are desperate they'll pretty much agree to anything....I know I did. I'm a much wiser person now having found this site!
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lmk3524
Joined: 06 Sep 2007
Posts: 437
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