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eBay Scam: The Pay Day Loan Scam - Watch Out For It

When is a scam, not a scam? When you get your money back - and that's the beauty of the latest scam that you can find on sites like eBay. But, if you've got your money back, have you been scammed at all? Read on to find out all about the Pay Day Loan Scam.

Imagine you're online looking for something to buy - and there it is. Just what you want, it's in your budget! Great. Check out their past history - and you can see that the seller has 100% feedback. So you buy the item, you pay by Paypal. All's good in the world.

The next thing you know is that, some days later, instead of receiving the goods, you receive an email. "Sorry, my mother died. I can't send you the goods now, I am refunding your money". Eh? But you don't want your money back, do you. You want the goods. That nice, affordable, little luxury that seemed such a good bargain.

Next, you get your money back. Have you been scammed? Well, not really - you are in no worse a position than you started. However, you HAVE lost the use of your cash for a few days - and, more to point, somebody else has gained the use of your cash for that time.

This is the Pay Day Loan Scam - rather than going to a company like Wonga, or any other pay day loan company, the seller's managed to borrow money from you for up to a week, costing them only the Paypal fees! Timing is crucial - this will typically happen when somebody's going to be paid shortly, but, in the meantime, needs cash in a hurry - maybe to settle a debt or a bill, or maybe just to keep their account in credit for a few days.

Calculate the cost of going overdrawn, or the cost of a Pay Day loan - and you can see why this is an attractive proposition for the brave.

Scam or not....? Hard to nail it really.

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Koalemos wrote on January 27, 2015, 11:46 AM

Despite not approving of such actions, I do have to admit that it is quite ingenious.

Maplewinter wrote on January 27, 2015, 11:58 AM

That's really quite imaginative although I don't think it is acceptable as it gaining money by deception.

amyk49 wrote on January 27, 2015, 12:25 PM

Good advice, and thanks for the heads up. I don't frequent the site, but good to know. Scams are everywhere these days!

UK_Writer wrote on January 27, 2015, 12:39 PM

It is ingenious, although entirely dishonest. You have to admire the person that first sat on their chair and thought of it :)

UK_Writer wrote on January 27, 2015, 12:40 PM

It is gaining money by deception. You're right. It's wrong, it's dishonest - and it can catch m/any people out when they get hit by the sob story email.... but with their funds fully restored they will probably not make an official complaint to ebay (or whichever site they've used)

UK_Writer wrote on January 27, 2015, 12:40 PM

It's not an easy one to spot before it's happened to you as everything seems OK

valmnz wrote on January 27, 2015, 3:36 PM

That is quite a fascinating concept. Oh dear, what will people think of next.

melon1234 wrote on January 27, 2015, 5:01 PM

Oh wow I didn't think that would be something that would happen but I guess it does make sense, I wonder who comes up with these things. People are losing out on their money even though they get it back, it's not fair

Dragonfairy1 wrote on January 27, 2015, 5:19 PM

That is a clever scam, and not something I ever would have thought of. You're right though it must be cheaper than bank fees.

celticeagle wrote on January 27, 2015, 8:49 PM

I guess that would work for some. But what if they didn't have the money back right away to send it back to you?

zabelle51 wrote on January 27, 2015, 10:04 PM

Wow is there no end to the ways people will think of to part of from our money even if it is only for a week. :)

UK_Writer wrote on January 28, 2015, 2:06 AM

There's no end to the ingenuity of the desperate people with a bit more time on their hands to think these things up

UK_Writer wrote on January 28, 2015, 2:07 AM

Yes, you spend ages trying to find something you want to buy at the right price, think you've got it coming soon, only to have to start again - missing deadlines and mucking up your plans, only to discover your money was "borrowed" from you

UK_Writer wrote on January 28, 2015, 2:08 AM

Yes. I'm sure some are judging it wrong though - and possibly not in a position to pay the money back, so there's the risk the buyer could end up without the goods or the money

UK_Writer wrote on January 28, 2015, 2:09 AM

Well, there is that risk that they've miscalculated. Once the pay day loan scam's more widely known, more people will try it and not be able to pay the money back

UK_Writer wrote on January 28, 2015, 2:11 AM

No, there is no end to the scams some people will manage to invent and carry out! I'd not want to be caught like this if I'd bought something important to me.

trufflehunter wrote on January 28, 2015, 7:58 PM

It seems like a lot of effort just to borrow money and I wonder what they use it for.

VinceSummers wrote on January 29, 2015, 7:26 AM

I don't get involved with loans and things like this. Now I'm more determined than ever to maintain that course!

UK_Writer wrote on January 29, 2015, 8:34 AM

One use is to prevent them becoming overdrawn, thus not incurring bank charges - and protecting their credit score.

UK_Writer wrote on January 29, 2015, 8:34 AM

Well, sometimes life just happens to you. e.g. you might save up all your cash for a car to get to work - then a week later it breaks down and you need to pay the garage to get it back.... and life's just dealt you another bad hand.

maxeen wrote on January 29, 2015, 12:41 PM

i've bought and sold on ebay from day one and never heard of that practice .I have always found ebay to be trustworthy and well organised .If I knew that was happeneing I would be in touch straight away to report it. Did it actually happen to you ?

VinceSummers wrote on January 29, 2015, 3:18 PM

Don't get me wrong. I'm poorer 'an a church mouse. I just don't take out loans. It always costs you extra to do so. And, as you so aptly point out, is especially risky via online.