How Does a Fax Payday Loan Work?

This is another frequently asked question (FAQ) about any type of payday loan… and the entire industry in general. There are many different ways to get the necessary information to the payday loan lender: online (via their website), over the telephone, by e-mail and by fax. Occasionally you will have to mail “hard copies” of the information via postal mail and/or bring these to the lender’s office in person. Most of the time you will be able to conduct the entire transaction via telephone, fax and Internet.

One of the main advantages of getting a fax payday loan is the quick exchange of any and all information that the payday loan lender is requesting from you. You also have the advantage of being able to get a confirmation of loan approval very quickly this way as well. The lender will be able to fax you all of the necessary documents so that you can review them before you sign them. The payday loan lender will probably require you to come to their office in person to actually sign the loan approval documents and agreement even if you have signed what they faxed to you. The reason for this is that your signature needs to be witnessed by the lender before it is considered a legal and binding contract. A facsimile (fax copy) of your signature is not enough to seal the deal in the eyes of the court.

Basically, you will need to fax a copy of your most recent checking account statement – this statement needs to show the activity on your checking account for and within the past 30 days. What is the reason for this; is probably what you are asking now. This is requested for two reasons: 1) verification that you do have an active checking account and 2) what your earnings are along with your ability to pay your current bills/debts. The other thing that you will need to fax to the payday loan lender is a voided check from your active checking account. This is requested so that the lender has both the routing and account numbers of your checking account to make the initial money transfer once your payday loan is approved… as well as to electronically debit that same account on the agreed upon day to start repaying the loan.

There is one thing that comes to mind right away: Identity Theft! You might be wondering what Identity Theft has to do with getting a fax payday loan; and that answer is fairly simple. You are providing some very personal information (your full name, social security number and your signature) that can be used to steal your identity by those payday loan lenders who do not walk a straight line and have not been dealing above board with the public.

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