Loan Protection?

A new twist on payday loans – loan protection! For only $30 you too can have loan protection, just in case you can’t make that payment on your payday loan. EZ Loan Protection has received more than 100 complaints in the last six months.

The complainants allege that consumers did not sign up for loan protection, but their credit cards or bank accounts were charged for the service. In fact, some complainants allege that they’ve never taken out a payday loan, yet they suddenly got a charge from this company. Others state that they had no idea that they were signing up for this service.

At a speech I gave a couple weeks ago a consumer asked how they could protect themselves. Regarding this company – here are a couple things to keep in mind:

1. Never give out your credit card, debit card or bank account numbers to any company that you have not checked out.  You need to know where the company is located, read up on reviews, what others say about the company and never just trust what you see on a website.

2. If you need a payday loan – find out what the company’s privacy policy is – who will they give your information to? If the company doesn’t have a privacy policy or you aren’t sure after reading their privacy policy what they’ll do with your information – don’t do business with them.

3. Check your financial accounts regularly to make sure that there aren’t any unauthorized charges. If something you did not authorize appears contact your financial institution immediately to dispute the charge.