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GREAT FALLS- Montanans voted last year to cap interest rates for pay-day loans at 36%, forcing many lenders to close up shop.

Now a new threat has popped up- online payday loans. Internet payday loans sound great, but unfortunately are scams too many Montanans are falling for.

"These are short-term loans where you can go online and fill out an application, they will then put the money into your bank account," Jolene Bach, with Consumer Credit Counseling Service, said.

What lenders don't tell you is they will do anything to collect their money. Reports have surfaced of alias offshore companies threatening family members and friends related to the consumer.

Complaints have also reported lenders will withdraw the set agreed upon amount when it's due plus more, wiping your bank account clean.

They don't stop there. They also sell your information to other brokers who steal their share.

"The only course of action for consumers once they gotten into these really bad products is to close your bank account entirely," Bach explained.

Identity theft is also an issue according to Bach.

"They open up credit cards in your name, high balances, it ruins your credit and it's very hard to recover from. So once you get in with these internet payday lenders you are setting yourself up for a whole host of other problems."

With the holiday season approaching, there are other remedies to access cash.

"Our banks and credit unions are operating in the law. They do set you up for success rather than failure because the interest rates are, while they might be a little bit higher for somebody with poorer credit they're definitely not the 600% interest rate or higher that you're seeing from these internet payday lenders," said Bach.

You can always meet with a free consumer credit counseling representative to set up a budget, plan of action and determine what options are best for you, because there are other options that are much safer than internet payday loans.

If you do get involved with internet pay-day loans, experts say you'll need to close your account immediately. The incident will not show up on your credit report because these types of accounts are illegal.