All payday lenders are not created equal; some are more reliable than others. The best payday loan lenders online share a few features. Taken together, these features translate into greater privacy protection, enhanced customer experience and better deals for their customers.
Here are the features to look for when shopping for a payday loan online.
Look for state Licenses: Reputable online payday lenders prominently display their state licenses on their websites. State-licensed lenders must comply with all applicable laws in states where they do business. State laws set limits on finance fees, loan amount, loan requirements, collection methods, debt ceiling, etc. These limits are there to protect consumers.
Look for security seal: Look for security encryption seals (like SSL, McAfee, TLS, etc) on lenders' websites. Whenever you see any of these seals on a website, it means that the site is equipped with technology necessary to protect your personal information and identity.
Look for CFSA seal: CFSA stands for Community Financial Services Association. This is an industry watch-dog organization that promotes fair lending and good business practices among its members. For example, a CFSA member will not threaten or pursue criminal action against a customer as a result of the customer's check being returned unpaid or account not repaid on time. Instead, CFSA members deal with collection cases through in-house arrangements.
Look for full Disclosure on loan agreement: Reliable payday loans lenders comply with full disclosure of loan terms as required by law. This means the lender will clearly state terms (like finance fees, other charges, due date of the loan, APR, etc) in the loan agreement. This way, there are no surprises for their customers. To find these disclosures on a website, go to the "fees and rate" section.
Look for signs of friendly customer service: It is indeed reassuring to talk to a human being at the other end of the line when you have a problem. A reputable payday lender has 24/7 customer service and can be reached via phone, fax, email or live chat. Click on the "contact us" link on the home page of a lender to evaluate its contact information.
So, what should you look for when shopping for the best payday lenders online? Look for state-licensed lenders with secure websites and friendly customer service as well as provide full disclosure of loan terms as required by law.
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