Virtual Works, LLC

Consumers have advised us that this company is making charges to their bank accounts after applying for a pay day loan. Some report that pop-ups are presented and they decline the offer but are charged anyway. We suggest that you contact your bank and report the issue and contact the Federal Trade Commission at www.ftc.gov.

This company offers a secured Mastercard, meaning that the credit card is not actually an extension of credit but must be pre-loaded with funds before it can be used for purchases. The company charges a $49.95 fee for their service.

When considering using a payday loan to tide you over until your next paycheck, make sure you read and understand all terms and conditions of the loan before making a buying decision. Even if those “cash until payday” services sound helpful, they could push you farther into debt. These short-term, high-rate loans go by a variety of names: payday loans, cash advance loans, check advance loans, post-dated check loans or deferred deposit check loans, and payday loans. With payday loans, a consumer writes a check payable to the lender for the amount he or she wishes to borrow plus a fee. The lender gives the borrower the amount of the check minus the fee. The lender holds the check until the borrower’s next payday, when he or she can do one of three things: allow the check to be cashed, redeem it by paying cash to recover the loan plus a fee, or roll it over by paying the fee to extend the loans for two or more weeks. Fees charged for payday loans are usually a percentage of the face value of the check or a fee charged per amount borrowed (typically lenders charge anywhere from $15 - $50 dollars for every $100 borrowed).

Under the Truth in Lending Act, the cost of the payday loans - like other types of credit - must be disclosed. Among other information, a consumer must receive, in writing, the finance charge (a dollar amount) and the annual percentage rate or APR (the cost of credit on a yearly basis).