You ;ve heard of cash advance companies in strip malls. Now, individuals in desperate need of money are switching to online loan providers, together with Minnesota lawyer general states some clients are now being illegally shaken down.
Five online loan providers would be the goals of separate legal actions filed Tuesday in Minnesota, citing unlawful financing practices. The investigation that spurred the legal actions, brought by Minnesota Attorney General Lori Swanson, identified ;unlawfully high rates of interest of as much as 782 %,” unauthorized withdrawals from clients ; bank reports and a collection scam that is phony. Tuesday;These Internet lending companies are really a sign of the times,” Swanson said. She stated they ;re benefiting from the chaos throughout the economy as well as customers who will be seeking a quick, fairly tiny loan for such a thing from an automobile fix to food.