One of the interesting things Iâ€™ve learned about payday loans is that there are many affiliates online that steer customers towards getting a loan.Â This one takes the cake.Â Nadya Suleman, the Octomom herself, has lent her name and image to a payday loan affiliate site.
Affiliates will collect a customerâ€™s information and sell that information to any of a variety of online lenders.Â This is called lead generation.Â If the loan is made, the affiliate makes a commission.
The trick that consumers should be aware of, and this applies to storefront lenders asÂ well, is to know exactly who you are borrowing from.Â There are legitimate lenders and, I imagine, a few non-legitimate lenders.Â By â€œlegitimateâ€, I mean those that follow all state and federal laws to the letter, and ideally follow CFSA Best Practices (since those seem to be a very detailed and transparent way of doing business).Â A â€œnon-legitimateâ€ lender is one that does not treat the customer as the law provides, period.Â Non-legit lenders should be chased out of town.
Now, I have no idea if the lenders in the Octomom network are legitimate or not. I hope they are.Â The CFPB and state regulators serve a purpose here, and that is to make sure that customers are treated as the law provides.Â Iâ€™m not opposed to regulators, as you can see.Â Thereâ€™s a place for consumer protection.
So when offered a loan, consumers should do their due diligence and find out all they can about the lender.
Know your lender.