For some, holiday cheer turns to bad news blues once bills from Christmas and every day expenses start to mount. When this happens, some people look for a loan. Stressing that securing a loan to fill the gap is fine, Mississippi Better Business Bureau CEO, John O'Hara says extreme caution should be taken.
"You just want to make sure that whenever you're signing any kind of a loan that you make sure that you read the fine print before you agree to the terms."
O'Hara says this is especially important when applying for a quick loan over the internet.
"Over the internet you're not going to be protected by Mississippi law because you're doing commerce over the internet, and you're not doing it in the state. The regulations, if they do come into affect this year, they do not regulate on-line loans that maybe come from another state, or maybe from an Indian Reservation which is not regulated. So, some of those interest rates on those pay day loans can be as high as 300%."
In fact, O'Hara says his office has had a case reported where a person applied for a quick loan over the internet; the loan stated that the person would get his money very fast. However, the person failed to read in the fine print that the interest rate was a whopping 338%!
"Again, you just want to make sure that you read the fine print before you agree to the terms."
For more information on this matter contact the Better Business Bureau. The phone number in Mississippi is 1-800-987-8280, and the number in Alabama is 1-800-824-5274.