Pop-up ads and other online offers for payday loans may be tempting to click on, but you could be putting your personal and financial information at high risk. Many of the online advertisements for payday loans are not from actual payday lenders, but lead generators that collect your personal information and then shop your loan application to a network of payday lenders. Your loan application will then be sold to the lender that decides to offer you a loan. Your name, address, Social Security number, banking information, annual income, and other sensitive information could land in the hands of several unknown third-party lenders. Even if your loan is sold to one lender, it may not stop other lenders from contacting you.
Before you click on that pop-up ad, consider the following:
- Lead Generator vs. Lender website.
- Look closely for disclosures on website that the company is not a lender.
- Look for lead-generator phrases such as, “connecting you with lenders,” or “our loan network,” that indicate your information will be shopped around.
Watch out for reroutes:
- Before you click on anything, hover your cursor over the link or icon to see what website you will be redirected to – do not click on any links to unfamiliar websites.
- Being redirected to many different websites could mean you are providing your personal information to several unknown companies.
Lowest rates guaranteed?
Verify the lender is licensed to make payday loans in Colorado:
- Search the Licensed Supervised Lenders List, available here.
- In order to become a licensed payday lender in Colorado, the lender must provide specific information to determine if the company complies with Colorado’s lending laws.
- Licensed payday lenders must follow Colorado payday lending laws, which set allowable loan rates and fee limitations.
If you have become a victim of online payday lending or if you wish to report suspicious activity, please file a report here.