BBB warns about the dangers of Cash Loan Apps

The Better Business Bureau is warning people about the dangers of Cash Advance Loan Apps. They allow you to obtain part of your salary in the form of a loan before payday.

Unfortunately, not all Cash Advance loans are created equal. The problem can the interest rate. Paying just $2 to withdraw $20 for two weeks comes out to an annual interest rate of 260 percent!

“These businesses are taking advantage of people who are in desperate straits,” says Stephanie Garland of the BBB. “Perhaps they feel like this is their only option.”

“The Better Business Bureau wants for everybody to think very hard before you do something like this because a 260 percent interest rate is quite high,” she adds.

Garland says some Cash Loan Apps also charge hidden fees sometimes called “tips” or “donations” or “premium account access.”

She says if it sounds too good to be true, it probably is.