(Source: Attorney General Buddy Caldwell) – Consumers encountering problems with payday loans now have more places to turn for help. The Consumer Financial Protection Bureau (CFPB) announced last week that it now accepts complaints from borrowers having trouble with payday lending products.
Payday loans, also known as “cash advances” or “check loans,” are often short-term, small-dollar loans, generally for $500 or less, and are often described as a way for consumers to bridge a cash flow shortage between paychecks or the receipt of other income. They can offer quick access to credit, especially for consumers who may not qualify for other credit, but can come at a high cost. Many payday loans are for small-dollar amounts that must be repaid in full in a short period of time. Payment is generally due the next time the borrower gets paid — meaning the loan may require repayment in only a few weeks. Many lenders require that borrowers grant them advance access to checking accounts in order to repay the loans.
Consumers are encouraged to file payday loan complaints with both the Louisiana Attorney General’s Office and the CFPB about unexpected fees or interest, unauthorized or incorrect charges to their bank accounts, difficulties with contacting the lender or problems with payments not being credited to loans.
To submit complaints, consumers are encouraged to:
2. Call the Attorney General’s Consumer Protection Hotline at 1-800-351-4889 and CFPB at 1-855-411-CFPB (2372)