Are Offshore Payday Lenders Safe to Use?

Offshore payday lenders are, as a rule, not safe to use. Would-be borrowers tend to come into contact with such lenders through the Internet, and an offshore payday lender's site may look just like any other site on the Web that centers on borrowing money. The pictures and the text may look the same at first glance. What is the main difference?

The main difference between an offshore payday lender and a lender based in the United States is the fact that the lenders in the United Sates are regulated lenders. Regulated lenders must meet certain guidelines according to the laws of the United States. These laws are in place to protect lenders.

Offshore lenders will usually tempt a borrower by offering a larger loan than the regulated lenders are allowed to offer. In return, the borrower will more than likely have to pay higher fees and many more fees than she would have had to pay had she chosen to borrow money through a regulated lender.

Plus, there have been many reports of offshore lenders actually withdrawing more than they were supposed to withdraw from borrowers' accounts. Even if a borrower tries to prosecute, these cases are nearly impossible to win.

For these reasons and more, please think twice before using an offshore payday lender.

blog comments powered by Disqus