The biggest case of fraud comes with the idea of pay day loans and the way they are structured to begin with.
This is a very unpopular thing to say if you work in the lending industry, but pay day loans are designed to take as much money from the customer as they can, while ensuring that they can retain the customer by putting them into a cycle of taking pay day loans to survive towards the end of the cycle, and then either bankrupting the customer or pushing them out completely into debt if they believe they have nothing of value.
Pay day loan companies have operated with far too little regulations for the last 20 years, which has seen the rise in debts for many customers over the years. Many times, these customers are not the most financially stable or responsible, and almost like vultures these lenders can immediately spot the customers they know that will inevitably default on their loan.
What is worse, is that these cycles can last up to 20 pay day loans, which become a 2 year highly profitable loan rather than just 20 pay day loans. The customer can borrow a higher amount each time they pay their loan back, yet the interest rate largely remains the same month after month. So, the customer unknowingly spends so much more than they would have paying these lenders back than if they just took out a personal loan 3 or 4 successful repayments in.
Every time a pay day loan has been repaid, the customers credit rating goes up. Eventually, they have paid back so many pay day loans that their affordability now approves them for a personal loan, but it is too late for the customer to either get out of the pay day loan cycle, or they are completely unaware of how much their credit rating has improved.
For the customers who figure this out too late, we can help, but too many are unaware of the option to sue for their payment back.