Consumer Financial Advocates, a group aimed at helping consumers recoup money from predatory online lenders, recently launched LoanReverse.com to help facilitate the process for consumers.
“Short-term, high interest rate loans have become necessary for many hard-working Americans to meet even their basic needs,” Buckley Carlson, a spokesman for Consumer Financial Advocates, said. “Millions have been duped each year by illegal online lenders and don’t even know it. Illegal online payday loans are devastating to those who have become tethered to them, and they create a debt-spiral from which it is difficult to escape. Through LoanReverse.com, we are succeeding where the government has failed; putting the squeeze on illegal, online predatory lenders while getting cash back into the accounts of their victims.”
The LoanReverse.com web service collects the borrower’s loan information, establishes refund eligibility and contacts the financial institution to facilitate the loan reversal. The service can help consumers recover payments made on illegal online loans of up to $1,000 each.
After the borrower’s information is collected, the website generates necessary documents using its proprietary software to streamline the paperwork process.
“Time is ticking for people to recover their money as the third-party clearing houses that coordinate payment transfers are going to wake up and not accept transactions from these illegal lenders that hide online in a shadowy world that cons more than $40 billion annually out of hard working people,” Carlson said.