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    heidi5's Avatar
    heidi5 Posts: 3, Reputation: 1
    New Member
    		  
    #1

    Dec 3, 2015, 02:12 PM
    Us bank a payday lender is requesting I pay an up front fee using a money gram .
    My concern that this may be fradulent and I want to know if a legitimate payday lender would require this up front cash fee with a money gram
    heidi5's Avatar
    heidi5 Posts: 3, Reputation: 1
    New Member
    		  
    #2

    Dec 3, 2015, 02:13 PM
    Payday lending
    Is it legal for a payday lender to request up front fees by the use of a money gram to get a loan?
    Curlyben's Avatar
    Curlyben Posts: 18,514, Reputation: 1860
    BossMan
    		  
    #3

    Dec 3, 2015, 02:32 PM
    Desperate times call for desperate measures.
    This is often referred to as an arrangement fee..
    smoothy's Avatar
    smoothy Posts: 25,490, Reputation: 2853
    Uber Member
    		  
    #4

    Dec 3, 2015, 03:24 PM
    Is the a place that offered you something unsolicited in an email... or is this a business you walked into and made the first move with?
    heidi5's Avatar
    heidi5 Posts: 3, Reputation: 1
    New Member
    		  
    #5

    Dec 3, 2015, 04:37 PM
    Quote Originally Posted by smoothy View Post
    Is the a place that offered you something unsolicited in an email... or is this a business you walked into and made the first move with?
    I did it on line. And I have never heard of US bank payday installment loans.
    smoothy's Avatar
    smoothy Posts: 25,490, Reputation: 2853
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    #6

    Dec 3, 2015, 04:50 PM
    They aren't uncommon, BUT They all require significant collateral (like a clear car title worth more than the loan) and charge very high rates. They cater exclusively to the people with bad or no credit, BUT I've never heard of ANY doing it online. But since I don't run in those circles maybe I just wasn't aware they did.

    If you aren't in the USA... then significant read flags are waving. Collateral and national borders are deal killers for most real banks.
    talaniman's Avatar
    talaniman Posts: 54,325, Reputation: 10855
    Expert
    		  
    #7

    Dec 4, 2015, 06:09 AM
    Pay day lenders generally take a post dated check, but logically if you can secure a loan with cash, or a money order with a fee, you don't need a payday loan then do you?

    Even if it's not a scam the conditions make it very high risk, with no upside. If you are outside of the US, I can see YOU being a high risk to a US bank.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #8

    Dec 4, 2015, 08:30 AM
    This is a common and well known loan fraud, it uses either money gram or western union, since once the money is sent, you can never get it back.

    https://www.scamwarners.com/forum/vi...php?f=3&t=3225

    No there is no fees up front but would be paid though your payments, In fact most payday loans deposit the money directly to your checking account, and also directly withdraw monthly payments
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #9

    Dec 5, 2015, 07:28 AM
    So you went online to request a loan and they are asking for a fee upfront to process the loan? I would be wary of ANY payday lenders. These lenders target the desperate, generally charge high interest and fees.
    ma0641's Avatar
    ma0641 Posts: 15,675, Reputation: 1012
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    #10

    Dec 6, 2015, 11:39 AM
    US Bank is not a Pay Day lender, they are a large bank, credit card and loan service. Are you sure of the name?
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