{"id":2605,"date":"2021-02-14T11:00:00","date_gmt":"2021-02-14T11:00:00","guid":{"rendered":"https:\/\/www.dailypay.com\/2020\/02\/14\/how-payday-lenders-masquerade-as-on-demand-pay-providers\/"},"modified":"2022-01-26T15:14:58","modified_gmt":"2022-01-26T20:14:58","slug":"how-payday-lenders-masquerade-as-on-demand-pay-providers","status":"publish","type":"post","link":"https:\/\/www.dailypay.com\/resource-center\/blog\/how-payday-lenders-masquerade-as-on-demand-pay-providers\/","title":{"rendered":"How Payday Lenders Masquerade as On-Demand Pay Providers [2021] Update"},"content":{"rendered":"

A poll<\/a> conducted by Morning Consult and commissioned by the Center for Responsible Lending, a nonprofit aimed at protecting consumers, found that 70% of registered voters approve of limiting interest rates on consumer loans to 36%\u00b9. The poll found that not only does this measure have bipartisan support, but survey respondents also indicated that they favor the IRS more than payday lenders. Ouch!The public\u2019s cold shoulder toward payday lenders isn\u2019t unwarranted, though. According to Pew, the average payday loan borrower is in debt for five months out of the year, spending an average of $520 in fees to repeatedly borrow $375\u00b2. This is especially alarming given the fact that 7 in 10 borrowers use payday loans for regular, recurring expenses such as rent and utilities.<\/p>\n

It\u2019s easy to see how vulnerable working Americans can easily get swept away into a vicious cycle of borrowing and debt. To combat this pandemic, a new industry has emerged: on-demand pay.<\/p>\n

On-demand pay providers aim to help employees access their earned but unpaid earnings in order to avoid predatory payday lenders, achieve financial stability and stay on a path of financial wellness.<\/p>\n

But as with any new industry, there are companies masquerading as legitimate providers while employing tactics that are traditionally used by payday loan lenders. Here are two of the many ways you can spot them:<\/p>\n

1) You need to provide the loan provider with personal information, including your ID, paystub and bank account number.<\/strong><\/p>\n

Payday loan providers require borrowers to provide them with their bank account information so they can reclaim the loan and any accrued interest.<\/p>\n

2) You have to post-date a personal check coinciding with your next payday or give the lender permission to electronically debit your bank account. <\/strong><\/p>\n

Debiting a borrower\u2019s bank account is a slippery slope, and can trigger <\/span>non-sufficient funds (NSF) fees or overdraft charges.<\/span><\/a> Just recently, <\/span>Silicon Valley-backed <\/span>Earnin\u2019 agreed to pay $12.5M <\/span><\/a>for deceiving American workers.<\/span><\/p>\n

\u00a0On-demand \u201cproviders\u201d who debit user accounts to reconcile payments are putting users at risk for these surprise fees, which puts them at risk of ending up in an even worse financial situation.<\/p>\n

Given the public\u2019s clear disdain for payday loan providers, it\u2019s imperative that companies and their employees are able to accurately identify payday lenders disguising themselves as on-demand pay providers.<\/p>\n

Fortunately, these practices are under intense regulatory scrutiny across the USA. New York\u2019s financial watchdog has called these fees <\/span>\u201cUnlawful Interest Rates Disguised as Tips\u201d<\/span><\/a>. For example, a bill that is going before the Utah state legislature regarding payday loans in February 2021 could have some negative consequences for thousands of hard-working residents. Even worse, this law would pretend to be \u201cnon-recourse,\u201d which just means the borrower won\u2019t lose her house after her bank account is emptied. In many cases, this can also cause disruption to pending child support obligations.<\/span><\/p>\n

Stay tuned for the update!\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

A poll conducted by Morning Consult and commissioned by the Center for Responsible Lending, a nonprofit aimed at protecting consumers, found that 70% of registered voters approve of limiting interest rates on consumer loans to 36%\u00b9. The poll found that not only does this measure have bipartisan support, but survey respondents also indicated that theyRead More<\/a><\/p>\n","protected":false},"author":32,"featured_media":11758,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[147],"tags":[618,415,61,615,613,74,36,614,173,60],"class_list":["post-2605","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-benefits","tag-cfpt-ewa","tag-employee-experience","tag-executive","tag-hr","tag-instant-pay","tag-on-demand-pay","tag-operations","tag-payday-loan","tag-payroll"],"acf":[],"yoast_head":"\nHow To Spot a Predatory Payday Lenders 2021 Update<\/title>\n<meta name=\"description\" content=\"Some companies masquerading as legitimate providers while employing tactics that are traditionally used by payday loan lenders.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.dailypay.com\/resource-center\/blog\/how-payday-lenders-masquerade-as-on-demand-pay-providers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Payday Lenders Masquerade as On-Demand Pay Providers [2021] Update\" \/>\n<meta property=\"og:description\" content=\"Some companies masquerading as legitimate providers while employing tactics that are traditionally used by payday loan lenders.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.dailypay.com\/resource-center\/blog\/how-payday-lenders-masquerade-as-on-demand-pay-providers\/\" \/>\n<meta property=\"og:site_name\" content=\"DailyPay\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/dailypay\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/trydailypay\/\" \/>\n<meta property=\"article:published_time\" content=\"2021-02-14T11:00:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-01-26T20:14:58+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.dailypay.com\/wp-content\/uploads\/masquerade-pay-providers.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"628\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"DailyPay\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@dailypay\" \/>\n<meta name=\"twitter:site\" content=\"@dailypay\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"DailyPay\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"How To Spot a Predatory Payday Lenders 2021 Update","description":"Some companies masquerading as legitimate providers while employing tactics that are traditionally used by payday loan lenders.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.dailypay.com\/resource-center\/blog\/how-payday-lenders-masquerade-as-on-demand-pay-providers\/","og_locale":"en_US","og_type":"article","og_title":"How Payday Lenders Masquerade as On-Demand Pay Providers [2021] Update","og_description":"Some companies masquerading as legitimate providers while employing tactics that are traditionally used by payday loan lenders.","og_url":"https:\/\/www.dailypay.com\/resource-center\/blog\/how-payday-lenders-masquerade-as-on-demand-pay-providers\/","og_site_name":"DailyPay","article_publisher":"https:\/\/www.facebook.com\/dailypay","article_author":"https:\/\/www.facebook.com\/trydailypay\/","article_published_time":"2021-02-14T11:00:00+00:00","article_modified_time":"2022-01-26T20:14:58+00:00","og_image":[{"width":1200,"height":628,"url":"https:\/\/www.dailypay.com\/wp-content\/uploads\/masquerade-pay-providers.jpg","type":"image\/jpeg"}],"author":"DailyPay","twitter_card":"summary_large_image","twitter_creator":"@dailypay","twitter_site":"@dailypay","twitter_misc":{"Written by":"DailyPay","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.dailypay.com\/resource-center\/blog\/how-payday-lenders-masquerade-as-on-demand-pay-providers\/#article","isPartOf":{"@id":"https:\/\/www.dailypay.com\/resource-center\/blog\/how-payday-lenders-masquerade-as-on-demand-pay-providers\/"},"author":{"name":"DailyPay","@id":"https:\/\/www.dailypay.com\/#\/schema\/person\/0dc5e72435b747402bdc50b62513acd9"},"headline":"How Payday Lenders Masquerade as On-Demand Pay Providers [2021] Update","datePublished":"2021-02-14T11:00:00+00:00","dateModified":"2022-01-26T20:14:58+00:00","mainEntityOfPage":{"@id":"https:\/\/www.dailypay.com\/resource-center\/blog\/how-payday-lenders-masquerade-as-on-demand-pay-providers\/"},"wordCount":486,"commentCount":0,"publisher":{"@id":"https:\/\/www.dailypay.com\/#organization"},"image":{"@id":"https:\/\/www.dailypay.com\/resource-center\/blog\/how-payday-lenders-masquerade-as-on-demand-pay-providers\/#primaryimage"},"thumbnailUrl":"https:\/\/www.dailypay.com\/wp-content\/uploads\/masquerade-pay-providers.jpg","keywords":["Benefits","CFPB EWA","Employee Experience","Executive","HR","Instant Pay","On-Demand Pay","Operations","Payday Loan","Payroll"],"articleSection":["Blog"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.dailypay.com\/resource-center\/blog\/how-payday-lenders-masquerade-as-on-demand-pay-providers\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.dailypay.com\/resource-center\/blog\/how-payday-lenders-masquerade-as-on-demand-pay-providers\/","url":"https:\/\/www.dailypay.com\/resource-center\/blog\/how-payday-lenders-masquerade-as-on-demand-pay-providers\/","name":"How To Spot a Predatory Payday Lenders 2021 Update","isPartOf":{"@id":"https:\/\/www.dailypay.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.dailypay.com\/resource-center\/blog\/how-payday-lenders-masquerade-as-on-demand-pay-providers\/#primaryimage"},"image":{"@id":"https:\/\/www.dailypay.com\/resource-center\/blog\/how-payday-lenders-masquerade-as-on-demand-pay-providers\/#primaryimage"},"thumbnailUrl":"https:\/\/www.dailypay.com\/wp-content\/uploads\/masquerade-pay-providers.jpg","datePublished":"2021-02-14T11:00:00+00:00","dateModified":"2022-01-26T20:14:58+00:00","description":"Some companies masquerading as legitimate providers while employing tactics that are traditionally used by payday loan lenders.","breadcrumb":{"@id":"https:\/\/www.dailypay.com\/resource-center\/blog\/how-payday-lenders-masquerade-as-on-demand-pay-providers\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.dailypay.com\/resource-center\/blog\/how-payday-lenders-masquerade-as-on-demand-pay-providers\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.dailypay.com\/resource-center\/blog\/how-payday-lenders-masquerade-as-on-demand-pay-providers\/#primaryimage","url":"https:\/\/www.dailypay.com\/wp-content\/uploads\/masquerade-pay-providers.jpg","contentUrl":"https:\/\/www.dailypay.com\/wp-content\/uploads\/masquerade-pay-providers.jpg","width":1200,"height":628,"caption":"Person dressed in an elaborate gold and white Venetian mask, holding a red rose. The mask features gold embellishments and intricate details, much like the ornate contracts of payday loans. The background shows a clear blue sky with a distant streetlamp."},{"@type":"BreadcrumbList","@id":"https:\/\/www.dailypay.com\/resource-center\/blog\/how-payday-lenders-masquerade-as-on-demand-pay-providers\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Resource Center","item":"https:\/\/www.dailypay.com\/resource-center\/"},{"@type":"ListItem","position":2,"name":"Blog","item":"https:\/\/www.dailypay.com\/resource-center\/blog\/"},{"@type":"ListItem","position":3,"name":"How Payday Lenders Masquerade as On-Demand Pay Providers [2021] Update"}]},{"@type":"WebSite","@id":"https:\/\/www.dailypay.com\/#website","url":"https:\/\/www.dailypay.com\/","name":"DailyPay","description":"Earned Wage Access Provider - DailyPay","publisher":{"@id":"https:\/\/www.dailypay.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.dailypay.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.dailypay.com\/#organization","name":"DailyPay","url":"https:\/\/www.dailypay.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.dailypay.com\/#\/schema\/logo\/image\/","url":"https:\/\/www.dailypay.com\/wp-content\/uploads\/dailypay-logo.svg","contentUrl":"https:\/\/www.dailypay.com\/wp-content\/uploads\/dailypay-logo.svg","width":157,"height":39,"caption":"DailyPay"},"image":{"@id":"https:\/\/www.dailypay.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/dailypay","https:\/\/x.com\/dailypay","https:\/\/www.instagram.com\/trydailypay\/","https:\/\/www.linkedin.com\/company\/dailypay-inc\/","https:\/\/www.youtube.com\/channel\/UCOHcuqx2v4Yqpm1bdt1AMWA"]},{"@type":"Person","@id":"https:\/\/www.dailypay.com\/#\/schema\/person\/0dc5e72435b747402bdc50b62513acd9","name":"DailyPay","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/e42f21a99897a3d3491b8b93da6117f50707d53af06c27b3db445d48b6477a8a?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/e42f21a99897a3d3491b8b93da6117f50707d53af06c27b3db445d48b6477a8a?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/e42f21a99897a3d3491b8b93da6117f50707d53af06c27b3db445d48b6477a8a?s=96&d=mm&r=g","caption":"DailyPay"},"description":"DailyPay, the leading provider of the daily pay benefit \u2014 a benefit offered through employers that allow employees to receive instant access to their earned income, works across a wide range of industries, including quick service restaurants, hospitality, retail, healthcare and other services. One in six Americans now has access to DailyPay through our trusted payroll service partners, including ADP, Paycor, SmartLinx, Netspend and other HR and payroll technology providers, who offer the daily pay product to their customers. With DailyPay, employees can pay bills on time and avoid late fees, helping them to reach their financial goals. Companies have reported that DailyPay increases employee engagement and retention and helps to support recruitment. DailyPay is backed by leading venture capital firms and world-class strategic investors. The company is headquartered in New York.","sameAs":["https:\/\/www.facebook.com\/trydailypay\/","https:\/\/www.linkedin.com\/company\/dailypay-inc\/","https:\/\/x.com\/dailypay"],"url":"https:\/\/www.dailypay.com\/author\/dailypay\/"}]}},"_links":{"self":[{"href":"https:\/\/www.dailypay.com\/wp-json\/wp\/v2\/posts\/2605","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.dailypay.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.dailypay.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.dailypay.com\/wp-json\/wp\/v2\/users\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/www.dailypay.com\/wp-json\/wp\/v2\/comments?post=2605"}],"version-history":[{"count":0,"href":"https:\/\/www.dailypay.com\/wp-json\/wp\/v2\/posts\/2605\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.dailypay.com\/wp-json\/wp\/v2\/media\/11758"}],"wp:attachment":[{"href":"https:\/\/www.dailypay.com\/wp-json\/wp\/v2\/media?parent=2605"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.dailypay.com\/wp-json\/wp\/v2\/categories?post=2605"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.dailypay.com\/wp-json\/wp\/v2\/tags?post=2605"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}