Here are the payday lenders with the most consumer complaints
Payday loans are a notorious debt trap. They often prey on vulnerable and desperate consumers and then send them into a downward spiral of debt. Here are the issues customers complain about the most, along with the top five worst offenders.
Using data from Consumer Financial Protection Bureau, David Chen of Millennial Personal Finance compiled a list of the top complaints from consumers about payday loans, as well as the lenders who have the most complaints. Chen explains his methodology:
Only the top 25 payday loan companies are included in a list of over 200 companies, but these 25 companies account for over 70% of payday lending complaints filed in 2016 … Data was extracted from the database of consumer complaints data from the CFPB on January 6, 2017. This data includes all complaints filed with the CFPB about the “payday loan”.[s]»For the whole of 2016. A total of 1,539 complaints were analyzed. All data has been sorted by company and by type of complaint, respectively visible in the published tables.
Unsurprisingly, the most common complaint was that the lender was “charging an unexpected fee or interest.” Consider Payday Loan Rates can reach 780% and they don’t spell that out exactly, it’s no surprise that consumers don’t expect these fees (and it’s an important reminder for always read and analyze the fine print of any financial agreement). However, there were a few other complaints which concerned:
- Unable to contact the lender
- I received a loan that I did not apply for
- Unable to stop debits to the bank account
- Payment to uncredited account
Top five lenders with the most complaints:
- Big Picture Loans, LLC
- ACE Cash Express Inc.
- Enova International, Inc.
- Quick cash holdings
- CNG Financial Corporation
As terrible as they are, payday loans are a legal business practice, so it’s a good reminder that it’s up to the consumer to do the research and read the fine print. It’s also a warning to anyone considering a payday loan: make sure you know what you’re getting into, as they aren’t exactly designed to work in your favor. For more details, head over to Chen’s full post at the link below.
CFPB Payday Loan Complaints – Data Analysis | Millennium Personal Finance
photo by Kevin dooley