Payday loans are popular among customers because it’s immediate cash and they assume that their personal information will be kept private, but sometimes it’s not the case at all.
MSN reports payday loans are costly because high interest rates often leave customers worse off than they were before securing the loan. But, one scam is costing loan applicants more than money–whether they’re approved for a loan or not. It appears that the website Usearching.info, a one-stop shop for ID fraudsters, stocks its virtual shelves with information from online payday lenders who have either been hacked or are in on the game themselves.
Allegedly, the website is a treasure trove for ID fraudsters that is filled with virtual shelves of information that has been taken from on-line payday lenders who are either freely giving the information away or those who have been hacked.
It apparently sells information like mothers’ maiden names, social security numbers, and driver’s license details. It consists of 330,000 records from lenders, which includes more than 75 million Americans personal information.
“It is extremely important to understand the terms of the payday loan and make sure it is plausible to pay back,” said Steve J. Bernas, president and CEO of the Better Business Bureau serving Chicago and Northern Illinois. “Many times the interest rates are so high that customers fall into a cycle of debt,” he added.