Be Aware of Unlicensed Lenders for Payday Loans in California

Payday lenders possess different eligibility criteria, but they necessarily should have age of at least 18 years, a US citizen or a permanent resident and must have regular source of income. You also need to provide your social security number and details regarding your checking account. You also have to provide information from your ID issued by state and the details regarding your current financial situation. $255 payday loans online are available in California easily to solve your immediate financial issues.

Under the new laws and regulations, lenders will need to know closely about repaying ability of borrower. It includes other debts of the borrower and basic living expenditures. Lenders will be allowed to check the account of borrower only twice. If borrower does not have money to repay the loan, lender should get an authorization from borrower prior making any attempt.

Be Careful of Unlicensed Lenders

Borrowing online can be even more convenient than contacting with the lender with face to face communication. It also provides great prevention from unlicensed lenders. The DBO offer warning to borrowers against the following threats that can occur by borrowing from unlicensed borrowers-

  • Illegal High Interest rate or Fees- In case, if you are borrowing from illegal lender, there are chances that you need to pay normal interest rate of California.
  • Identity Theft- Unlicensed lenders usually leak your personal financial information to the third parties that causes risk of identity theft or hacking of bank account.
  • Unauthorized Access to Your Bank Account-Few unlicensed lenders can illegally withdraw money from bank accounts of borrowers, in case when they are unable to repay the loan amount.

Unlicensed lenders can work even out of the state or outside the US for making it difficult for California to do justice. Thus, it is essential to assure that your lender is licensed for lending in California.

Process of Filing the Complaint against the Lender

If you have borrowed from an unlicensed lender who does lend by rules, you have two options in this situation for filing complaint against lender-

  • Filing with California Department of Business Oversight (DBO)
  • Filing with Consumer Financial Protection Bureau (CFPB)

For filing complaint with DBO, you need to go to DBO website and file a complaint online against lender. DBO will take action against the lender, cancelling his or her license and charging a penalty.