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Since the Internet is world wide it makes a perfect place to find new people to exploit and steal from. Many honest, hard working people looking for payday loans are unaware of scams and the unethical tactics they use to "capture new customers. Phishing sites are designed to collect personal information on you such as your name, social security number, phone number, and bank account numbers, etc..
This information is then used to get credit cards, drain your bank accounts, or worse your information is sold. Sometimes your identity is sold to the highest bidder, who uses it to defraud the government, avoid taxes, or even sold to illegal immigrants so they can gain employment. I did find several sites that were not designed to collect information, however they were still usually rip offs, with very short payment terms, and high interest rates.
They were more than happy to loan you money, however 9 out of 10 times the loan time was very short, which means you constantly had to request extensions which of course comes with a fee.
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If a loan is not repaid in full by the loan's due date, it will be considered delinquent and will be classified as non-payed. In such cases, the file associated with that loan will be sent to a third party collection agency. The borrower who did not repay his or her loan will have this default reported to a credit agency.
The borrower's credit rating may be affected negatively.