Payday Loan Scams Move Online
from the hiding-from-state-laws dept
Payday loan storefronts are generally a huge scam targeting lower income individuals, tricking them with insane interest rates that they’ll never be able to pay back. Many states have enacted laws to stop these offerings, but it turns out that they’re just moving online instead and avoiding the state laws altogether. Once again, the question of online jurisdictions is being raised. If state laws say one thing to stop a scam, can the scammers simply move online? Does it get them out from under those laws, or does any online operation have to abide by every local law there is? As good an idea as it is to stop these sorts of scams, it’s tricky to figure out how to apply these sorts of laws in an online world where geographic location doesn’t so much matter any more.