Payday Police - Payday Advance

Payday Advance Services Warnings

How Payday Advances Work

I'm sure you have seen the ads saying "Quick Cash", "Fast Loans", "Fast Cash Advances", for amounts ranging from $100 to $1000. They exploit convenience but fail to tell you how a payday loan really works. Payday Advances are also known as payday loans or cash loans to consumers. Payday advances are usually secured by a personal check or bank account information. After completing the agreement, the consumer is given an amount which is the fee for the loan process. Terms of payment is then discussed with the lender. Of course there are some precautions the FTC and Police Patrol suggest you take while searching for a payday advance.

You can avoid scams by:

Don't pay for anything over the phone. Its illegal for companies to offer loans and require you to pay for it before you receive it
Ignore ads and calls from companies that ask for a fee in exchange for your payday advance
try not to give your credit card number or bank account information over the phone as you apply for payday advance loans.

Ads for payday advance services usually appear in the paper with "900" numbers, which later incur charges on your next phone bill.

If you don't have the cash advance payday loan offer in hand -- or confirmed in writing -- and you're asked to pay, don't do it!

Who Is Taking Out Payday Advances

Although taking a payday advance can be a logical solution to some financial situations, some companies focus on targeting the less fortunate. According to the CFSA (Community Financial Services Association of America), payday advance customers represent the working middle class of society.

Applicant incomes range from $25,000 to $50,000 annually
68% are under age 45
42% own their own homes
66% use payday loans to cover unexpected expenses
34% used it for planned expenses
70% choose an online payday advance because of convenience
96% are aware of finance charges

Don't be a statistic! Know where the dangers of a fast payday advance really are and avoid the high fees and risk of these loans.

Borrow Smart!

Payday Police wants to make sure you receive your loan with out incurring unexpected charges in the process. If you have decided to take a payday cash advance, there are some tips listed below to look out for.

Early repayment fee. Believe it or not, some companies will try to penalize you for paying off your loan early.
Late repayment fees
Membership fees. Companies might try to charge you to become a member in addition to their service fees.
Fine print on contracts

Debit fees or bounced checks