BBB alerts consumers to “online” Payday Loans

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By | June 1, 2015

Better Business Bureau is alerting consumers to NetLoan USA, an online payday loan provider and others that also solicits business via telemarketing and has a track record of not providing loans after accepting advance fees.According to BBB files, consumers state they are informed to pay $199 to $499 to process the loan, and they should expect to receive their funds within 24 hours. However consumers allege once they wait the given timeframe of 24 hours and nothing is received they reach out to NetLoan USA and other advance fee loan companies, at which point they are informed their loans have been turned down by lenders due to low credit scores or unpaid debts.They are then told they are required to pay another {{more}} $300 to $700 as loan insurance to continue processing the loan. Consumers then reach out to NetLoan USA with refund requests; only to be informed the monies paid are for processing fees and are non-refundable.The company currently has an F rating with BBB on a scale of A+ to F, the lowest possible.Factors that lowered NetLoan USA’s rating include BBB concerns with the industry in which this business operates, 18 complaints filed against business, failure to respond to 18 complaints filed against business.The company’s complete BBB Business review can be found at: .BBB’s complaints seems to indicate consumers are contacted by NetLoan USA regarding loans consumers applied for online. They are informed they have been pre-approved for loans ranging from $1,000 to $15,000. One local consumer reported that he applied for a $5,000 loan from the business. The consumer was then told he had to pay $184 up front via a prepaid Visa card, then $184 per month over the course of the loan.He sent the company a prepaid Visa card loaded with this amount to receive the loan, then was told he needed to send an additional $244 to insure the loan, which he did.NetLoan USA then told him they needed $400 for MoneyGram to send the loan.The consumer informed the company he did not have an additional $400, but sent a $295 on another prepaid Visa card.The company then refused to grant the loan, saying he still owed $143 for the remainder of the insurance and penalties on a loan he never received. He was told he would receive the loan via MoneyGram, but confirmed with the company that the loan was never sent.BBB offers the following tips to avoid this and similar scams and predatory loans:• Start with Trust®. Check with the BBB before doing business. • Do NOT apply for loans online often personal information is not secured or phony sites steal and sell your information to scammers world-wide• Avoid doing business with companies only accepting Green Dot MoneyPak cards, prepaid credit cards or wire transfers. When a consumer gives someone the number on a loaded card or wires money, it is like sending cash and is untraceable.• Read and understand any agreements, policies or terms and conditions before agreeing to any loan. Make sure the loan company has a verifiable physical location.• If you need credit, shop carefully. Consider a small loan from your credit union or a small loan company, an advance on pay from your employer, or a loan from family or friends.“Look for the Seal” and Start with Trust®. BBB is a private non-profit organization that strives for a trustworthy marketplace by maintaining standards for truthful advertising, investigating and exposing fraud against consumers and businesses. Please contact Better Business Bureau at or 691-1533 for information on businesses throughout North America.