September 30, 2022
  • September 30, 2022

BBB warns of the dangers of payday loan scams

By on September 2, 2022 0

CLEVELAND, Ohio (WOIO) – The COVID-19 pandemic has led many people to turn to high-interest loans, short-term loans or payday loans as a way to make ends meet. These loans, which are illegal in 18 states, are legal in Ohio and can be extremely hurtful to people applying for a loan.

The BBB asks people to make sure they are incredibly clear about the rules regarding payday lending. The terms and conditions of these can make payday loans incredibly difficult to repay. From 2019 to 2022, 3,000 customers complained to the BBB of payday loan companies, with “disputed amounts approaching $3 million.”

Payday loans, apart from being very problematic in some ways, scammers have also started taking advantage of needy people through these loans. According to the BBB, 7,000 reports with a total of $4.1 million in losses show just how much of a problem this can be.

A case happened to a man in North Olmsted in August. The scammers were able to obtain the victim’s social security number, contact information, bank account, and login information. Complaints can be filed with the BBB at BBB.org/Complaint. Anyone who is scammed can use the scam tracker at BBB.org/ScamTracker.