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It’s even easier to apply for a payday loan online, plus you have the privacy of not having to walk into the check-cashing store on the corner. And as Laura Bruce writes for Bizrate.com, if you borrow from these businesses, you could be worrying about more than just the super-high interest rates. You typically have to provide a lot of personal information to the payday company’s web site, such as your Social Security number, driver’s license number, and mother’s maiden name, as well as your name, address, and employment information. But that’s not all. You’re also required to give your checking account number and bank routing number, so the lender will have access to your account. The lender will deposit your loan into your checking account and then subsequently dip into it to withdraw interest, fees, and the principal. Some lenders require that you fax them your latest pay stub, most recent bank statement, photo ID, and a voided check.
That’s an awful lot of personal data, but it’s likely most people applying for loans don’t have a clue as to whom they’re giving this information. As Laura Bruce cautions, many web sites that pop up when you do a search for something such as “payday loans” really aren’t
Warning: Stay Away From Pay Day Loans