That is correct. You should never have to pay money to get money for a payday loan and then put that money on a money card that can not track who take the funds. Keep far away from these crooked crooks and pass this on to others so they do not fall victim to this mess.
I have recently been on the receiving end of a scam. Here is what happened.
I was applying online for loans to at least get me through a month .I get a phone call from a man with a thick accent telling me I am approved for an $8000.00 installment loan. Due to be paid back monthly over 12 months. Here is the catch his so called finance company will need to verify 200.00 that I would have to load on a prepaid card. Yes I know how could you be so stupid? Well I am going to be a first time father and just lost a job. So freaking out check! Feeling desperaete check! So I gave it a shot against my own better judgement. They took the 200.00 and then went further to try and get another 250.00. The next thing I did was file a police report. But that's not a large amount so unless this company (elitecashwire.com) has been reported I don't have much hope. That's not all I received another phone call the next day telling me I'm going to be served a warrant for my arrest. So the whole point of this message is to try and prevent crooks like this from continuing to get away with this.
Of course he didn't get arrested - he was the victim of scammers.
Scammers call out of the blue and offer you a loan - this is a red flag, since in the majority of cases, the called person didn't even apply for a loan. The scammers say you need to pay money upfront, either to cover processing fee, insurance, first installment or because you have bad credit. This is the biggest red flag - it is ILLEGAL to have to pay money upfront to receive a loan. You have to pay the fee via some prepaid card like Green Dot or Vanilla, or even Western Union - yet another red flag.
When you pay the money they never deliver the money. They say you have to pay more fees until you finally twig that you've been scammed. And there's nothing you can do to get your money back since you paid them via prepaid card or Western Union.
Then they turn it around and try to scam you for more money by threatening arrest for a loan they say you received and never paid back - and of course, you never received the loan in the first place.
Debt is civil, not criminal, so even if you did owe a loan to anyone, you are NOT going to be arrested if you fail to pay it back. The point is, these people are so threatening, that many people DO end up paying them, even though they never got a loan.
That just makes the situation even worse, as the scammed person's details are sold on to other scammers who will call them and make the same claim, that they received a loan and never paid it back and are going to be arrested, thrown in jail, have to pay X amount of dollars if they go to court, etc, etc.
The loan scammers called me numerous times, and wanted me to get a green dot money pak for 200.00 and they said after i read the verification number on the money pak card they would deposit $2000.00 into my checking account. The insisted no money would be withdrawn from the money pak
To the original poster - this is a well-known and long running scam by our friends in Pakistan/India sitting in "boiler rooms" randomly dialing numbers. IT IS A SCAM.
And ESPETH is absolutely right. They're full of poop.