Fraud and Abuse On The Web: Harmful Practices in Web Payday Lending

Report shows borrowers encounter high costs, threats, unauthorized withdrawals, lost bank reports


This report, the 4th in Pew’s Payday Lending in America series, examines Internet-based loans that are payday discovers that lender techniques frequently have severe harmful results on customers. Payday loans online are far more costly compared to those provided through shops consequently they are made to market renewals and long-lasting indebtedness, and additionally they usually bring about unauthorized withdrawals, disclosure of private information, threats against borrowers, and customer complaints. This report reiterates Pew’s suggestions that the buyer Financial Protection Bureau follow strong, clear regulatory instructions that may result in the whole small-dollar loan market, including online pay day loans, safer and more transparent.

Key Findings


1/3 of online borrowers had loans organized to renew automatically

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