Personal Finance Summary

Payday loan ads on social media leave youth susceptible to heavy debt | Wallet Warning

Predatory payday lenders are using social media platforms to make dishonest claims promising instant cash with no credit checks, late fees, or interest rates. Many times, these “lenders” are getting around the rules of the platform.

Regina Morrison Newman

Guest Columnist

 

If you’ve ever needed extra cash to tide you over to your next paycheck, you understand the appeal of a payday loan.

Now, video ads on places like TikTok are promoting small, short-term loans to a new, young audience – and making them seem cheap and easy.

Remember, just because it looks simple, doesn’t mean it is. Predatory payday lenders are using social media platforms to make dishonest claims promising instant cash with no credit checks, late fees, or interest rates.

Many times, these “lenders” are getting around the rules of the platform. TikTok and Meta have rules restricting ads for short term/payday loans, but some have found their way through.