What is the difference between an online payday lender and one with a storefront?
Answer: Some key differences between getting a payday loan online versus in a store is the interaction between you and the lender and whether they follow your state’s payday lending laws.
If you take out a loan at a storefront, you may have a better idea of where you can go for help and who to contact if you have any questions or problems.
If you take out a loan online, the website you visit might not belong to the actual lender. It may belong to a lead generator that will market your loan application to a number of lenders.
Another potential difference between online and storefront payday lenders is whether they are licensed to do business in your state, and whether they follow your state’s payday lending laws.
A storefront payday lender is likely licensed in your state (although it always makes sense to check with your state regulator) but some online lenders will offer loans to people in states where they do not have a license. If a lender is not licensed by your state, it might not be following your state’s laws on payday lending.