I am interested in running a payday loan site like this one here: http://www.ezchance.com/ And wondering what I should be aware of, any financial regulations in regard to running an advertising board for loans in general? Is just a simple disclaimer would do? Or I'd have to deal with government? My company operates out of San Jose, California. Any advice would be highly appreciated. Thanks!
In the UK payday loans are currently not heavily regulated and to offer them you simply need a consumer credit license and so to advertise them you dont need any additional licenses or permissions. That said, here, all financial services products come under the watchful eye of a governmental regulator and they are very strict about the accuracy of adverts and require certain information to be in the adverts (eg they must display the interest rates in a prescribed way - result is most payday loans are 3000% interest plus). The regulator has much more powers to punish rules breakers than the normal watchdog for advertising standards.
Get a lawyer, payday loans are very regulated in California. It is illegal for most people to charge interest above certain amount, it is usury. Anyway, this is not a simple topic, nor one you should consider without knowing what you are doing. (And looking to this forum for answers is not a good idea) http://ag.ca.gov/consumers/general/usury.php
That site does not look like a payday site that actually offers payday loans..looks like one of those sites where people post their needs, and other members chip in for the loan, maybe, not real sure. Post free loan needs Post free loan ads I doubt a site looking this bad does not get involved in actual loans...they may make some type of commission in other ways...no real or legit site would use google ads...lame...