The Financial and Consumer Services Commission (FCNB) has issued a warning about unlicensed online payday lenders.
The commission said it has seen an increase in complaints about “inappropriate behaviour” from unlicensed payday lending businesses.
It said these complaints include reports of intimidating collection practices and aggressive communication methods.
“Some consumers have reported that unlicensed payday lending businesses have contacted them at their place of employment or contacted their employer or coworkers when they fall behind in their payments, which is against the law,” said a news release from the commission.
The commission said consumers should be aware that using the services of an unlicensed company puts them at greater risk for harm.
It adds using licensed lenders gives consumers some added legal protections from “predatory lending practices,” including interest rate caps and cancellation options.
“Payday lenders must be licensed by the commission, whether they have a physical location or are only offering loans online,” said the commission.
You can check if a payday lender is licensed by visiting the commission’s website.
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