Amscot Payday Loan Disadvantages🤢

By Bob Jones Jan7,2023

The Amscot payday loan is a fast and convenient way to get cash in a hurry. Generally, customers can find the amount of money they need within a single hour. However, there are some disadvantages to using this financial option. Fortunately, there are several other options that are both cheaper and safer.

First, there is the APR, which varies based on the amount of money a borrower borrows. In Florida, the maximum charge is $10 for every $100 borrowed over a 31-day period. While this is in line with the national average, it does not mean that the rate is a true reflection of the cost.

Second, there are fees for the loan, which can be as high as $11 per $100. If you can’t pay the amount back on time, you may be eligible for an extended payment plan. Additionally, most states require that you provide proof of income before you can take out a cash advance.

Third, there is an arbitration agreement that will limit your right to sue the company. This is a common contract clause. It also means that you won’t be able to pursue a class action lawsuit.

Fourth, there are no automatic renewals or checks. You’ll need to visit your local retail branch and fill out an application. Once you are approved, you’ll have to wait 24 hours before you can apply for another cash advance. Depending on your lender, you can also pay a fee for not returning the money you owe.

Fifth, the customer service at Amscot can be good or bad. Some consumers have criticized the customer service, while others have praised it. The customer service may vary depending on the individual employees.

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Finally, the company operates only in Florida. Although it has many locations throughout the state, it doesn’t have a presence in other areas. That’s because Florida has some of the strictest consumer protection laws in the country. One example is the requirement that Amscot connect its customers with a financial counselor.

Another benefit to using a cash advance is that they are usually less expensive than late fees or penalties for overdue bills. Depending on your bank, you might even be able to negotiate a longer payment plan.

The company is also a founding member of INFiN, an organization of responsible lenders that promotes industry best practices. Those who join the group must display the organization’s “Best Practices” brochure prominently.

Lastly, Amscot is registered with the FinCEN as a Money Service Business. This registration is required in order to protect consumers from online scams. As such, the company donated $821,150 to national political campaigns during the 2013-14 election cycle.

Despite its negative reputation, the company has only received five complaints in the past three years. Several customers have reported that the company has provided them with refunds for unpaid cash advances.

There are some benefits to using a cash advance, but you should be aware of the risks before you go out and apply for one. Fortunately, there are other options available, such as federal credit unions and federal credit cards.

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