Payday loan scams and predatory lending infograhic Payday loans... • Offer interest rates calculated weekly or biweekly rather than annually, allowing them to hide charges • Target people desperately in need of cash but who often can’t pay back • Trap borrowers with: - stacking fees - triple-digit annual interest rates up to 650% - short-term repayment schedules • Can be obtained in 32 states, most of which have different laws with varying interest rate caps • From companies operating online make tracking the issue more difficult Better Business Bureau® (BBB) study finds uneven laws and stolen data allow scammers and predatory payday loan companies to thrive. For the complete study, visit BBB.org/scamstudies Report scams on BBB® Study: Payday loan scams and predatory lending 2019-2021 complaints and reports 23,588 reports about payday lending Consumer Sentinel Network - administered by the Federal Trade Commission Better Business Bureau 12 million Canadian dollars lost to advance fee scams The Canadian Anti-Fraud Centre 7,834 BBB Scam TrackerSM reports about loan and debt collection scams with losses of $4.1 million 2,996 complaints about payday loan companies with $2.9 million disputed 117,415 complaints lodged against legal loan and debt collection companies with $118.7 million disputed

Payday loan scams & predatory lending infographic

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