Online loans same day: Safe lending advice to use in an emergency

Category: Questions & Answers

Lenders today offer online loans same day to attract more borrowers. Unfortunately, a direct lender can game the regulations, leaving borrowers at their mercy. This is Rachel’s concern.

“I’ve heard of same-day loans being hawked like a commodity to people who need cash fast. I need a quick access loan, too, so I’m considering this type of loan to pay for an urgent bill. What are the things I should remember to make sure I don’t get scammed?” – Rachel, Seattle, WA

Rachel, always be aware that while there are ethical and legitimate lenders, there will always be scammers whether here, in the UK or Canada using online loans same day to trick borrowers. In fact, in you state, the Washington State Department of Financial Institutions had received complaints in the past from borrowers who didn’t get the loan after wiring money for various fees, such as application fees, insurance fees, and tax fee. The lender turned out to be a con, misleading borrowers to transfer money to get the loan.

Modus operandi of scammers

It’s silly but it bears pointing out—the lender should not ask for cash from the borrower to approve the loan. Whatever fees are being charged upfront, they should be taken out from the principal that the lender is issuing. No matter how small, the fees for online loans same day should be inclusive in the loan. So if you’re taking out a $500 loan and the total initial charge is $20, you should receive $480 upon approval of the loan. This should even be true with bigger loans like $1,500, which is now more readily available according to this article.

The Federal Bureau of Investigation also reported that some scammers would call people with existing debts. The caller would pose as a representative of the FBI’s “legal department,” and demand that the borrower wire the payment immediately or face imprisonment. The FBI doesn’t do this. In fact, threatening the borrower is illegal.

Protect yourself from scammers by remembering these simple steps:

1) Know your state regulations

Online loans same day are governed by state regulations. Depending on where you live, the regulations put a cap on interest rates and other fees. There are states that also limit the number of loans you can make simultaneously, or the number of times you can refinance a loan. Here’s a summary of lending regulations by the National Conference of State Legislatures. Verify with your state legislature if the online loans same day being offered follow your state rules.

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2) Verify license of direct lender

A quick step to protect yourself from scammers is to check the license of the loan company with your state Department of Financial Institution. Deal only with lenders that are duly registered. Better yet, make sure the lender is easily accessible via phone (or office address) like this lender announcing its new service in with a contact information. That way, you can run after it in case an issue arises. In Washington, you can verify the license at this address.

3) Report an erring lender

There are times when even a licensed direct lender will commit an illegal act like harass you at work or use intimidation to collect. In some case, you may be charged with fees that are not in the contract. If you feel that you’re a victim of unscrupulous lenders, you can report the lender at or contact the Federal Trade Commission at 1-877-FTC-HELP (382-4357).


Online loans same day are fast and easy to get today. However, it’s also easy to fall victim to a scam if you’re not careful. Make sure to choose your loan agency carefully to reap the full rewards of online loans same day.

By Louie Andre

B2B & SaaS market analyst and senior writer for FinancesOnline. He is most interested in project management solutions, believing all businesses are a work in progress. No stranger to small business hiccups and drama, having been involved in a few internet startups. Prior to his for-profit ventures, he has had managed corporate communications for a Kansas City-based Children International unit.

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Jesse Fraze says:

Scammers will always be with us. The rule of thumb is if it sounds too good to be true, it is. Having said this, may I suggest that legitimate online lenders should tone down their pitch because sometimes they do sound like the scammers? I know they need to have catchy copy and all that, but often, just by being straightforward and honest, borrowers are more likely to gravitate to you.

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Hale Fontanilla says:

Another scammer idea is to ask for a guarantor. The guarantor, a close friend or family member, will be asked to pay the initial fees for you. Then the lender will simply disappear after getting the money. It’s a double whammy for the borrower—it’s already embarrassing to ask help from a guarantor and at the same time causing him/her to lose money is tragically guilt-ridden. In the meantime, the borrower still needs a loan.

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Gary David says:

Thanks for the tip. I know it sounds silly that you need to pay first before you get the loan. You’re borrowing precisely because you don’t have money. I still see a lot of these scammers in my inbox goading me to “invest” and take out a loan. Some will even give you a check but you need to place a processing fee. Turns out the check is fake and the lender runs away with your money.

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