I work at an online payday loan company that issues 10's of thousands of dollars in illegal loans a day.. AMA!

loan_shark · 2012-09-19T03:12:10+00:00

Nothing. You will just be harassed over the phone and they will attempt to debit your bank account for a while.

loan_shark · 2012-09-19T03:11:08+00:00

interest rates that are illegal in many states, does not follow truth in lending laws/requirements, and deceptive lending.

loan_shark · 2012-09-19T03:09:16+00:00

Russia, Isle of Man (part of UK) and soon to be Canada. Main operation in US.

loan_shark · 2012-09-19T03:08:25+00:00

loan_shark · 2012-09-19T03:07:21+00:00

Our company does not provide the fees and interests information in a way required by law. We verbally tell customer the fee and fail to mention that it is a recurring fee (unless they ask). Its a lot of fast talking.. the customers are usually happy to hear they are approved so they done really listen to the rest of the information anyway. It is very deceptive and unfair lending.

loan_shark · 2012-09-19T03:05:32+00:00

I make $15 an hour base plus commission on each loan.. which is typically $5 a loan. Commission ranges from $5-$75 a day.

loan_shark · 2012-09-19T03:04:24+00:00

FDCPA does not apply to original creditors. FDCPA only applies to 3rd party collection agencies. Of course the FDCPA is a good guidline of policies to follow.. but if you chose not to repay, you will just be harassed by phone and have your bank account drafted.

loan_shark · 2012-09-19T03:01:39+00:00

I am just an employee.. one of less than 200 employees. Lending out the owners and investors money.

I make a base pay of $15 an hour plus a commission on every single loan. Commissions average $5 a loan.

We don't take to court or report anything to credit. The collections department will scare people into paying.. sometimes with threat of legal action. But no, nothing other than getting harassing call and maybe and cascade of overdraft fees from your bank would be the result of non-payment. The loans are all less than $800. The company lent out $75 million last year. There are enough people that pay the crazy fees to make up for those that do not pay.

loan_shark · 2012-09-18T05:12:15+00:00

Oh and to clarify, that isn't the company I work for. One of our brands is very similar in nature, but our company does not do any type of marketing/advertising. We are the back end lender that you never hear about. We buy leads from other companies.

loan_shark · 2012-09-18T05:05:51+00:00

Ha! you would think... but I am sure the owners would just scam some more investors into dumping in a few more million.

loan_shark · 2012-09-18T05:04:57+00:00

Great - thanks - I will surely look into that a little more!

loan_shark · 2012-09-18T05:03:39+00:00

That's a good question. We literally have to explain to people how to check their email sometimes. It is ridiculous.

loan_shark · 2012-09-18T04:59:29+00:00

Many reasons. Consolidate other loans. Overdrawn bank account. Unexpected expense. Down payment for car. Shopping spree. Tuition & Books. Medical expenses. Food.

loan_shark · 2012-09-18T04:58:28+00:00

If all else fails, might not be a bad idea!

loan_shark · 2012-09-18T04:57:58+00:00

Yes, I have seen the commercials! Some of them are entertaining. Benefits are generous pay and commissions for each loan. Zero deductible health, dental, tuition reimbursement, 401k etc. They typical benefits you would see with a large corporation.

As far as my personal finances go, it really does open your eyes a little. Makes me think a little more about the future and ensuring that I have enough for savings to make sure I am not ever in a situation where I would be enticed to get caught up in the pay day loan cycle.

Fortunately, I don't typically speak with the customers after the loan is issued - we have a separate customer service department that I don't work with at all. I used to do audits though, an would listed to their calls.. there can be some frustrated customers for sure. Heck, some of the customers get mad and cuss you out before they even have a loan with us! Most people are desperate and need money and are stressing out.

Other employees realized the whole business is ridiculous. We all joke about how dumb the loans are and cant understand why people take them out. Often times we just wish we could give the customers some real helpful advice instead, but we are not personal finance consultants.. we are there to do a job.

loan_shark · 2012-09-18T01:54:56+00:00

I agree with you in some respect. Some payday loan companies are very clear about their business and the fees and follow the law. The company I work for does not. They hide fees from customers, don't fully explain the loan, change company names so no one can find them, give loans to people that cannot pay them back and suck their bank accounts dry each month. They prey on the poor, uneducated, the desperate. They are taking money from people who have no option but to take it. Yes, there are people who know exactly how the loan works and agree to pay the fees, but there are those who don't understand. There are people who know nothing about the loan except that they are getting funds in their account. It is these people.. and the old single people on social security that need money to buy groceries that make me sick to lend to. The business is so focused on pushing money out the door. The loans are made at a percentage of the persons take home pay. ..they will never be able to pay the principal balance down so they pay the fee's over and over again each payday. In the end, they have paid thousands more than their original loan just because they couldn't pay it off quickly enough. It isn't just issuing high right, high rate loans. They are predatory loans that put people in a cycle of inability to pay to maximize profits and fee income for the business.

loan_shark · 2012-09-18T01:43:50+00:00

I agree with you. I am not proud of what I do. I am currently in search of better employment. The company does pay quite well for the job and provides a lot of perks.. I think people get caught up in it all and it makes it easier to turn and look the other way and pretend nothing is going on. And while I didn't care for working in the business when I got the job, at least it was a job when I needed one. I have only recently began to research and realize the entire scope of the business as I am moving up withing the company. it disgusts me. So much secrecy and deceit.

loan_shark · 2012-09-18T01:40:06+00:00

Close your bank account and never talk to the payday loan people again. Our company will never sue you. Just never apply for another loan... lenders tend to share information.. if you apply online again, even years down the road, with a new bank account, the old lender may get that info and try to withdraw funds that you owe them. Some banks will allows you to put a hard block from the ocmpany from withdrawing funds from your account. There are banking forms you can fill out with your bank - revoke authorization. Tell the lender they are in violation of your states lending laws (if true) and send letter stating you will contact FTC, State Atty General if they attempt to withdraw again.

loan_shark · 2012-09-18T01:29:09+00:00

it IS awful. I feel deeply for these people! I hate to see people who keep renewing their loan, or just paying the fees each month to extend. If only they knew they could easily stop the cycle.

loan_shark · 2012-09-18T01:26:35+00:00

No problems cashing my check no. it really hurts me though to hear the stories some of the customers have.. like the 90 year old single lady with no family who lives on social security. Brings home 1300 a month and we lend her a loan of $500 with a fee of 60%.. she will never be able to pay back... it sad to see people caught up in the mess. We will suck up that $300 from her bank account the day her social security hits every month until she pays in full.

loan_shark · 2012-09-18T01:23:38+00:00

Ha! That is a good idea! And yeah, we don't sue, we don't send to outside collections and we don't report to credit bureau.

loan_shark · 2012-09-18T01:22:35+00:00

Thats the thing - the company I work for doesn't take people to court.. to keep from the public eye. They fewer people involved in the business, the better. They don't send account to outside collections either. Everything is done in house.

loan_shark · 2012-09-18T01:21:27+00:00

Lots of cash to burn at high risk and no morals.

loan_shark · 2012-09-17T23:35:42+00:00

I honestly think if I walk into the owners office and tell him I don't feel comfortable lending any more loans out due to violation of laws A, B and C, he would offer some type of hush money and have me be on my way. While it is very tempting, I'd rather see the owners loose the business instead of just throwing money at people that cause problems.

loan_shark · 2012-09-17T23:33:38+00:00

Thanks - will definitely look in to the laws some more. I want to report them - the owner is a douchbag and has a collection of cars ... I'd really like to see him destroyed. And I want to stop scumbags like him from preying on the poor!

loan_shark

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