Online Payday Loans Present Risks to Consumers - 8 News NOW

Online Payday Loans Present Risks to Consumers

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LAS VEGAS - Out of cash? You may think a payday loan is the best option. Obtaining one online, however, could cost you much more than you bargained for.

Payday loans can be costly if you aren't careful. The way they work is a company will loan a customer money until the customer can make it to payday and pay the money back. Payday loan companies typically charge interest and/or fees for the loan, which can add up if the loan isn't repaid.

Hundreds of customers have been slapped with fees just for visiting some Las Vegas-based payday loan websites, even though they never took out a loan.

Several online payday loan businesses in Las Vegas have been taking $30 from bank accounts of people who browse their websites. The Better Business Bureau has so far received more than 370 complaints.

Among the worst offenders are: Capital Advance Capital, Vantage Funding, Palm Loan Advances, Ideal Advance, Loan Tree Advances, Your Loan Funding and Pacific Advances.

The Better Business Bureau and 8 on Your Side went to their locations to seek answers and uncovered another surprise.

"It's a mail drop. There is a mail center there, and that's all it is," said Rhonda Mettler with the Better Business Bureau. "It is just a mail drop."

The Better Business Bureau warns consumers to never give banking or personal information to unfamiliar people or websites. Plus, read and understand all the terms and conditions of any website for a loan company before entering any information.

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