In a world where our phones are an extension of our hands, finding the right…
In a recent report, it was revealed that there are close to 300 raptorial loan apps presently available in the Google and Apple app stores. These apps offer short-term loans with extravagant interest rates, frequently targeting low-income or financially vulnerable druggies. In some cases, these loan app interest rates can be as high as 700%.
Loan sharks make use of the Internet and mobile technology.
Loan sharks have long been a problem in numerous communities, but the arrival of the internet and mobile technologies has made it easier for them to reach a wider followership. By offering loans through apps, loan sharks can avoid regulation and take advantage of people who are hopeless for cash.
The report from the Consumer Financial Protection Bureau( CFPB) set up that numerous of these loan apps are using deceptive tactics to bait druggies into taking out loans they can not go. In some cases, the apps will show false advertised rates or hide the true cost of the loan in the fine print. Others will use deceiving marketing practices, similar to promising” 0% interest” loans when in reality the interest rate is still veritably high.
Indeed worse, some of these loan apps are needed to be repaid in full within a veritably short period of time, similar to two weeks. This means that borrowers frequently find themselves unfit to repay the loan and end up taking out another loan to cover the first one. This can produce a dangerous cycle of debt that’s delicate to escape.
Don’t fall for these loan sharks. Do your exploration first!
Still, be sure to do your exploration first, If you are considering taking out a short-term loan. Make sure you understand the true cost of the loan and what the prepayment terms are before you agree to anything. And if an offer sounds too good to be true, it presumably is. There are plenitude of estimable lenders out there who can offer you a fair loan without resorting to raptorial practices. So do not get caught in the trap of a raptorial lender you may noway be suitable to dig yourself out.
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