BBB Alert: Consumers Say Payday Lenders Took Money Even When They Didn't Apply For Loans

The sky-high interest rates payday lenders charge is bad enough. But a group of Las Vegas-based payday loan companies took money from consumers' bank accounts even though they hadn't applied for loans, they told the Better Business Bureau.

The BBB is warning consumers nationwide about a cluster of online payday loan businesses in Las Vegas that have been taking $30 from bank accounts of people who browsed their websites in recent months. More than 370 complaints have been filed against the companies.

The seven loan companies, all based at the same Las Vegas address, have websites that are virtually identical except for the company names. The names include Capital Advance Capitol (also known as Loan Assistance), Vantage Funding, Palm Loan Advances, Ideal Advance, Loan Tree Advances, Your Loan Funding and Pacific Advance. All except Your Loan Funding have “F” grades with the BBB. Your Loan Funding is not rated.

Most of the people who complained said they never formally applied for the loans, and a few said they had no idea how the businesses got their bank account numbers.

The BBB’s tips for consumers to avoid being scammed by such
sites include:

1. Don’t give your banking or personal information to unfamiliar people or websites.
2. Read and understand all the terms and conditions of any website for a loan company before you enter any information.
3. Before doing business, check a company’s BBB Business Review at www.bbb.org.

Read more in today's BBB news release.

Follow the BBB on Facebook or  Twitter or go to www.bbb.org for more information.