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You have probably heard them called deferred deposit checks, cash advance loans, payday loans, or post-dated check loans. Whatever they are called, these loans always share certain features. They are all for a short term, for a small amount, and have a high service fee. They are the most expensive type of “loan” available and should be used only as a last option.
Here is how they work: Usually a borrower writes a personal check payable to the lender for the amount he or she wishes to borrow, plus a service fee, usually $15 per $100 borrowed. The company gives the borrower the amount of the check minus the fee. Say you want to borrow $100: Typically, you will be asked to write the lender a check for $115. They will then give you $100 in cash and keep the check for two weeks. Some lenders take the fee out of the amount borrowed.
Customers with questions about the system or the status of their payday loans can call Veritec’s toll-free customer call center at 877-KY-DPP01 (877-593-7701). Initially, the call center will be open from 9 a.m. to 6 p.m. Monday through Friday and 10 a.m. to 3 p.m. on Saturday.
Credit Counseling Help
Consumers who would like assistance with developing a budget or debt repayment plan may contact the Consumer Credit Counseling Service (CCCS)/Apprisen Financial Advocates, a nonprofit community service and member of the National Foundation for Consumer Credit.
Kentucky has nine offices, the closest locations are: Elizabethtown, Louisville and Bowling Green. To arrange a free, confidential counseling session at any office, or via phone or e-mail, call toll-free 800-355-2227 or visit www.apprisen.com.