A fax-less or no-fax payday loan lender is similar to most online payday loan companies. The same requirements are needed, such as proof of employment and a bank account. The proof of employment may include the minimum length of time employed and the minimum salary. The bank account is where the applicant’s salary is deposited by the employer.
A payday loan lender may verify the applicant’s records with Teletrack. But this check will only show if the applicant has sent multiple loan applications. It does not reveal whether you have unpaid loans. This is why most payday loan lenders don’t bother checking your credit history. What is important to them is that you have a job, your source of money to pay your payday loan.
With fax-less payday loan companies, the applicant does not fax documents to prove that he is employed or that he has a current and active bank account, the payday. But rest assured that there is no “big brother” scenarios implemented by lenders.
To verify the borrower’s employment, the payday loan lender will contact the employer or the company’s human resources department. They will ask questions about how long you have been in the company, your salary and other information to check the veracity of the information you provided in the application form.
To verify the existence of the bank account, a representative from the payday loan company will call the borrower and will offer two options. First, the borrower may scan his bank statement and then email it to the payday loan lender. Or second, he may call his bank and request the bank to fax his most recent 30-day bank statement to a toll-free number owned by the payday loan company. If the borrower chooses the second option, the bank may fax the needed document for free or may charge a certain amount for the faxing service. This will depend on the bank.
You may be confused and ask why the fax is still used even though it is a fax-less payday loan. Technically, you, the borrower, did not use a fax machine. You used a phone to inform your bank. It is the bank who used the fax. A fax-less payday loan is advantageous to persons who have no easy access to fax machines. Banks, on the other hand, will always have fax machines.
After both employment and bank account have been checked, the payday loan lender will proceed to the next steps. The borrower signs a contract and issues a check to the lender. The check contains the amount borrowed plus interest and service fees. Then, the lender deposits money (the amount borrowed) in the borrower’s bank account. This process can be completed in less than two days.