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Get Instant Payday Loans for Social Security Checks? Sure at 400% Interest!

Social Security Check Loans financed at 400% APR or More – That’s with out scams!

By Florence Klein
Florence Klein
Courtesy of Florence Klein, Founder, SilverPlanet.com

Today’s economy has millions of Americans struggling to get by and make ends meet. This includes many older Americans on Social Security. There may be times when a check is needed just a day or two early so a bill can be paid on time with no late fee or interest charge. Seniors, and others, need to be careful of using “payday” loans as a way out of a pinch because they may find themselves in a larger set of pinchers!

Consumers can take payday loans against social security and other federal checks but there are drawbacks. The big pinch for any payday loan comes in the form of fees and interest. The statistics for Seniors taking out loans for social security checks are unclear but the average payday loan is $300 and costs $50. On average the loan is flipped 9 times for an average of $450 dollars cost to get the $300 loan. This $450 does not include paying off the loan or the interest on the loan that can be in excess of 400%.

Many also worry about the push by the federal government go green and cut costs by switching millions of people to electronic payments of Social Security and other federal benefits. This can open elderly consumers to internet fraud.

Disreputable marketing along with scams and frauds make matters worse. Earlier this month the Federal Trade Commission filed a complaint in federal court to stop online operations that allegedly debited consumer bank accounts with consent by the account holders. According to the FTC, consumers were charged up to $59.90 per month and later $99.90 per year for “Direct Benefits” and Voice Net” programs for food, travel and merchandise discounts, or for long distance calling and Internet access.

Consumers allegedly gave their account information, including social security and account numbers, during the online payday loan application process on the defendant’s websites like mypaydayangel.com and juniperloans.com. According to the FTC this information was later used to remove money from the accounts without authorization and even after the consumers declined the offers made.

Most of the consumers discovered the missing money problem after finding unexplained withdrawals on their bank statements, receiving overdraft notices or by their bank informing them they were overdrawn. The consumers only learned who was making the withdrawals after contacting their bank or digging up an online payment order to companies like Direct Benefits, Landmark Clearing Inc. or Voice Net.

Consumers who called the defendants in this case got a run-around and had to resolve their case with their financial institution. Most of the consumers had to dispute the charges or close bank accounts to stop the debits.

The court has stopped the online operations or the defendants in the case, Direct Benefits Group, LLC, Voice Net Global, LLC, Solid Core Solutions, Inc., WKMS, Inc., Kyle Wood and Mark Berry, and froze their assets pending further court proceedings. The defendants were charged for violating the FTC Act against collecting consumer bank account information without consent and then debiting said accounts. The FTC further alleges the defendants with failing to adequately disclose the withdrawals and using consumer financial information for a payday loan applications.

This case is now in the courts but there are likely scams in operation. How do we protect ourselves from internet account fraud? Start by knowing who you are giving your information to. If you have any doubts at all, do not give out your personal information and keep your confidential information confidential.

Do not respond to any requests by phone, email, or online for your personal account information. If you start the transaction with an institution you know, trust and have an account with you can trust them. Do not give your information out until you have established trust.

If you feel you have been a victim of fraud, contact your financial institutions. To report a suspected crime or fraud scam contact: The FTC Complaint Assistant
The FBI Internet Crime Complaint Center
Your local authorities (check online or your phone book)

To file a complaint or get free information on consumer issues, visit the FTC or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261 or watch a video, How to File a Complaint.

Take care and stay safe.


Published August 10, 2011

Florence Klein

NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The complaint is not a finding or ruling that the defendant has actually violated the law. The case will be decided by the court.