Imagine paying $1,700 on a $225 loan. It happened to one woman, and the Better Business Bureau has a warning so it doesn't happen to you.
“Desperate times are leading people to the Internet to apply for payday loans and many are falling deeper into debt after getting tangled up with a lender who has zero regard for the law,” said Stephen A. Cox, President and CEO of the Council of Better Business Bureaus.
The Better Business Bureau of Eastern North Carolina says unlike a payday loan that you might get from a local business, online payday loans require your bank account number. That means you're at the mercy of the lender as they withdraw money from your account.
Hundreds of people have complained to BBB after signing up for a payday loan on sites like OnceClickCash.com, 500Fastcash.com, rbtloans.com and Ameriloan.com.
The BBB says people have found the payments they made to the lender went towards finance charges, and not the principal, and they ended up paying a lot more money back to the lender than they borrowed.
To read more details about this scam, click here.