Payday loans are popular amongst the masses in various names. People refer to them as check advance loans, deferred deposit loans, cash advance loans, and post-dated check loans. No matter how you refer to payday loans, it is best to stay away from them as much as possible. These short-term loans come at a very high interest. For instance, in the state of South Carolina, the annual percentage rate for a $100 loan can be as much as 390%.
There's yet another reason why it is better to avoid striking out a deal with the payday loan lenders. Some lenders don't have any license to operate in your state. They would use all the strategies to reap profits and ruin your financial life.
Regardless of the legal status of a company, lenders would always try to make as much money as possible from the borrowers. For instance, Payday One deposited $17575 into the account of a forum member in June 2, 2010. The company debited nearly $22855.21 from the member's account later. This lead to an overpayment of about $5280.21.
Illegal payday loan lenders are even more venomous. They have no qualms in breaking laws and making fake threats to borrowers. This is why it is strongly recommended to check if the payday loan lender has license to do business in your state.
Some of the illegal payday loan lenders in the state of South Carolina are Plain Green, Magnum Cash Advance, EZ Payday, Payday One (now known as Rise) and North cash. If you've taken out a payday loan from these 5 companies, then your responsibility is to only pay the principal amount. It is not required to pay fees or interest rates.
For more information on how to deal with the illegal payday loan companies in South Carolina, click here.