Of course, that fee is all they're really in business for, and you'll never receive the promised loan. By the time you call them to find out where your loan is, they'll be gone. While these outfits market heavily in the U. S., they often operate in some other country, making it virtually impossible to track them down. What's truly sad is that many desperate people have borrowed money from friends or family, or taken a cash advance from their credit card, to pay the fraudulent fee. Then they're deeper in debt with nothing to show for it.
Payday loans can be very tempting for people who are struggling to make ends meet.
You show the lender recent pay stubs, and they advance you cash. The intent is for this to be a short-term loan, which you will pay back at your next payday, or over several paydays. The problem is that the fees charged are often exorbitant. Clearly this is no kind of deal. Over the life of your payment plan, this can amount to several hundred or even thousands of dollars.