CLEVELAND, Ohio (WOIO) – The COVID-19 pandemic led many to turn to high interest, short term credit loans, or payday loans, as a way to make ends meet. These loans, which are illegal in 18 states, are allowed in Ohio and can be incredibly hurtful for people seeking the loan.
The BBB is asking people to make sure that they are incredibly clear about what the rules are regarding the payday loan. The terms and conditions on these can make payday loans incredibly difficult to pay back. From 2019 to 2022, 3,000 customers have complained to the BBB about payday loan companies, with “disputed dollar amounts nearing $3M”.
Payday loans, in addition to being very problematic in some aspects, scammers have begun to take advantage of people in need through these loans as well. According to the BBB, 7,000 reports with a total of $4.1M in losses show just how much of an issue this can be.
One case happened to a man in North Olmsted in August. The scammers were able to get the victim’s social security number, contact information, bank account and login information. Complaints can be filed to the BBB at BBB.org/Complaint. Anyone whos is a victim of a scam can use the scam tracker at BBB.org/ScamTracker.
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