Hi regency,
"Exactly which methods, software, etc. are used to verify a person's
identity in order to get a faxless payday loan. Are there other
methods similar to TeleTrack that lenders are using?"
Payday loans differ from other loans in that your credit history is
not important. What *are* important are your employment (because
payday loan companies are offering a cash advance on your pay check)
and your bank account. Therefore, any lender, whether the application
is done by fax or not, is going to need a confirmation of employment
and bank account information. Payday loans are only granted to people
with employment or other income, such as social security or disability
checks.
The only difference between faxed and faxless applications is, for the
former you would confirm you personal information by faxing (including
bank statement and paystub) and, for the latter you would give it over
the phone. However, if it's faxless, the loaner will still need a bank
statement (fax from your bank) and confirmation of employment (phone
call to your employer). If your most important issue is to keep your
employer from knowing about your loan application, it would be best to
fax your paystub. If you don't have a fax machine or scanner and fax
software, you can ask any bank to fax it for you (for free or a small
fee).
What is required to get a payday loan?
To get a payday loan, most consumers only need to show personal
identification, have a personal checking account, and provide proof of
income from employment or government benefits, such as Social Security
or disability payments. Unlike conventional lenders, payday lenders do
not look at a borrower's monthly expenses or her ability to repay the
requested loan.
http://www.responsiblelending.org/payday/faq.cfm
"After filling out our online application, we will need you to have
your bank fax us or email us your most recent bank statement. (30
days) There usually several different ways that you can accomplish
this:
1. Scan your bank statement into your computer and email it to us.
2. Contact your bank and ask them to fax your most recent 30 day bank
statement to you at our toll free number"
http://www.cashforceusa.com/faq.html
AeroAdvance Financial, Inc.
"Because your cash advance loan is secured by your paycheck we must
initially verify your employment with the company you have listed on
your application. Once this initial verification has been made any
additional cash advance loans applied for and approved thereafter will
not be verified with your employer. Only in cases of default and fraud
will your employer be questioned about your current employment and
current contact information."
http://www.aeroadvance.com/privacy.asp
Cash2day4u:
"Just fill in the online application form for immediate approval."
"You then have the option to either receive a phone call or call us to
confirm your details and to go through the verbal agreement."
Really no proof of income and no faxes?
"Yes, only very few customers ever have to fax any documents. This
only occurs when we are unable to verify your employment over the
phone."
http://www.cash2day4u.com/
Platinum Cash Advance:
How Does A Payday Cash Advance Loan Work?
"It's actually quite simple. To receive your paycheck advance loan,
all you need to do is read and complete our online application form. A
representative will contact you within a few minutes to confirm your
details and complete the processing of your application (in some cases
it may be necessary to fax in certain documents to support the
information you submit online)."
http://www.platinumcashadvance.com/how.html
Additional Links of Interest:
Pay Day Loans... Worse Than Loan Sharking:
http://credit.about.com/cs/consumerwisdom/a/042100.htm
Alternatives to Pay Day Loans:
http://credit.about.com/cs/consumerwisdom/a/042100_2.htm
Payday Loans:
"In a typical payday loan, a consumer would write a personal check for
$115 to borrow $100 for two weeks (until payday). The annual
percentage rate (APR) in this typical example is 390%. In 19 states
payday loans are illegal."
http://www.legalconsumerguide.com/legal_information/safety_and_health/consumer/money_credit.html
Wolf in Sheep?s Clothing: Payday Loans Disguise Illegal Lending:
http://www.consumersunion.org/pdf/paydayloans2.pdf
Nine Signs of a Predatory Payday Loan:
1. Triple digit interest rate
2. Short minimum loan term
3. Single balloon payment
4. Loan flipping (extensions, rollovers or back to back transactions)
5. Simultaneous borrowing from multiple lenders
6. No consideration of borrower's ability to repay
7. Deferred check mechanism
8. Mandatory arbitration clause
9. No restrictions on out-of-state banks violating local state laws
http://www.responsiblelending.org/payday/signs.cfm
Fact Sheet on Payday Loans: Alternatives to Payday Loans:
1. Negotiate a payment plan with creditors.
2. Credit cards/Secured credit cards.
3. Advances from employers.
4. Credit unions.
5. Overdraft protection.
6. Lines of credit from finance lenders.
http://www.consumersunion.org/finance/paydayfact.htm
Alternatives to Payday Lending:
"The typical payday loan is more than twice as expensive as a credit
card late fee, and much more expensive than paying bills late. In the
average payday loan, the borrower receives $255 for two weeks and pays
$45 in fees."
http://www.responsiblelending.org/payday/alternatives.cfm
I hope this helps and you're able to see your way through the maze of
money lenders. If you have any questions or if I've misunderstood your
questions, please post a clarification request *before* closing/rating
my answer and I'll be happy to reply.
Thank you,
hummer
Google Search Terms Used:
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Request for Answer Clarification by
regency-ga
on
13 Oct 2004 12:45 PDT
Hummer,
I already know how most of these services work. I asked what types of
verification, aside from paystubs, bank statements, etc..are used.
Specifically, how a lender can verify my identity and ability to repay
without those documents being faxed. Is there a service that the
lnders use, like TeleTrack or TeleCheck, to verify my identity? It
seems that without a bank statement, they would not be able to know if
I have overdrafts or bounced checks, and I know that lenders will deny
your loan if you have any/too many nsfs. How could they find out that
info aside from a fax, whether from me or the bank, of my most recent
banking activity?
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Clarification of Answer by
hummer-ga
on
13 Oct 2004 14:14 PDT
Hi regency,
"Specifically, how a lender can verify my identity and ability to
repay without those documents being faxed."
I'm sorry if you misunderstood my answer. Faxless payday lenders will
verify your identity, employment, and bank account the same way as
other payday lenders - by getting a copy of your paystub and bank
statement. Just because the application is faxless doesn't mean that
they don't have the same requirements. Faxless only means that you
won't have to send a fax as part of your application, but if you want
the loan, you *will* have to supply what they need one way or the
other. This information (your bank statement and paystub) are not
available by any other means - you must authorize access to them.
Again, payday lenders are not interested in credit history, they
really do not care too much about you or your credit history because
the only thing they are doing is giving you a cash advance on your
paycheck - your paycheck is your collateral. Even if they did check
your credit, they would still need your bank account and paystub -
they need these to verify that your pay checks are being deposited
into that account, rather than to check up on your credit.
"Unlike conventional lenders, payday lenders do not look at a
borrower's monthly expenses or her ability to repay the requested
loan."
http://www.responsiblelending.org/payday/faq.cfm
Payday Loans No Credit Check & Bank Statement
"And if you are concerned about your bad credit; well, don't worry
your loan will be approved before you even start thinking about the
next course of action. There is no credit and bank statement check at
EZpaydaycash. We do not consider your credit history while evaluating
your application for payday loans."
http://www.ezpaydaycash.com/payday-loan-no-bank-statement.htm
Q: What documents do you require for me to fax in? Back to top
A: After submitting your loan application, all you need to do is fax
us three items:
* Your personal check with the number you entered in your application.
If you have a savings account, then you can disregard this request.
* Your most recent complete bank statement, showing your direct deposits.
* Your last two (2) pay stubs, showing your direct deposits.
http://www.ezpaydaycash.com/faq.htm#5
"Is there a service that the lnders use, like TeleTrack or TeleCheck,
to verify my identity?"
No, most don't.
"How could they find out that info aside from a fax, whether from me
or the bank, of my most recent banking activity?"
They can't - only you can authorize access to that information.
Please let me know if you need further assistance. There is no limit
to the number of clarifications that you can post and I prefer that
you do not close your question until you are completely satisfied.
Sincerely,
hummer
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