Everyone has seen or heard about the infamous ‘payday loan’. However, most people don’t realize how much of a risk they are, especially when they use an online payday loan lender for their needs.

The Better Business Bureau is notifying borrowers about the dangers of providing your bank account information to these online companies. Many people surf the internet, looking for the best deal. They than proceed to provide their banking information to several payday loan lenders, without thinking twice. The BBB has received over 20 reports of unauthorized charges coming from a credit service provider called Select Platinum Credit. The victims claim that their bank statements have a charge of $49.99 on them after they had applied for an online payday loan. A cease and desist order has been issued on August 25th for this business, but there are certainly others like it online.

Most people don’t know the risks of giving out their banking information online. They also don’t know the legality of payday loans. These upfront loans that allow you to get your pay check in advance for a very large fee, are illegal in 15 states. These states are as follows.

Arizona
Arkansas
Connecticut
Georgia
Maine
Maryland
Massachusetts
New Hampshire
New Jersey
New York
North Carolina
Ohio
Pennsylvania
Vermont
West Virginia

The other states allow payday loans, but regulate them highly. Many of the online companies are operating illegally in jurisdictions that do not allow them to.

The ease of getting a payday loan can be very attractive, but there are generally better, safer, more affordable ways of getting needed cash up front. Financial advisers suggest asking your bank about a short term loan, that will cover your expenses at a much more affordable interest rate.