CFA has laid restriction on number of payday loan lenders .They charge $30 per $100.The APR reaches around 650%. Online payday loan service is the prime cause of such high interest rate. As far as payday loans sites are concerned, people borrowing loan through internet are prone to higher risk than the people involved in availing cash from the payday loan stores. "Internet payday loans cost up to $30 per $100 borrowed and must be repaid or refinanced by the borrower's next payday," said Jean Ann Fox, CFA's director of consumer protection. "If payday is in two weeks, a $500 loan costs $150, and $650 will be electronically withdrawn from the borrower's checking account."

The payday loan lenders who run business through internet renew the loans and automatically withdraw money online from the borrowers account. If sufficient amount is not found in the borrowers account then insufficient fund fees is laid on the borrower. Usually personal information like the bank account numbers, Social Security Numbers and employer information is asked. This information may be fed into the computer through internet and may be misused too. "Internet payday loans are dangerous for cash-strapped consumers," stated Ms. Fox. "They combine the high costs and collection risks of check-based quick cash loans with security risks of sending bank account numbers and Social Security Numbers over web links to unknown lenders." 38 sites out of 100 really have nominal APR and disclose all the fee factors that will be imposed on the borrowers and are safe. Rest mint higher APR and may not be very reliable.

Thus CFA requests the consumers to seek credit counseling help or make some legal assistance.For more information please log on to http://www.paydayloansolutions.net/