Consumers must be made aware of the possible dangers in acquiring payday advances. You have to be wary of unprincipled lenders while paying attention to the threats of loan scams.
Avoiding Loan Scams
- Same day loan scams have been in the news lately. Hence, borrowers must be careful in applying for these online loans. In fact, there are illicit individuals or groups claiming to be lenders using impressive websites. However, their only goal is to obtain your confidence and deceive you into parting with your hard-earned money.
- The first advice is to disregard uncalled-for emails that offer easy payday loans. Attachments contained in these emails may contain malware so avoid opening them. These emails most likely originate from con artists who may be phishing for your personal details. Refrain from giving your money in advance to alleged lenders who demand upfront payments before your short term loan application can be processed. The industry rule is that legitimate and highly regarded lending facilities do not ask for advance payments.
- Research all alternatives open to borrowers. Your primary source should be online reviews and testimonials in checking the background of payday loan lenders. You can also visit the portal of the Better Business Bureau to find out if there are existing complaints against the lending company. Find out if the credit facility has an authentic physical address, email address and contact details. The lender must have a business license and other registration requirements implemented by the local government. Visiting the office of the payday loan company is also a good way of verifying the company’s legitimacy.
- Avoid providing your bank account information to anyone without double-checking the validity of the person or entity. The ideal way is to transmit electronic fund transfers through honest service providers. Check the integrity of the lender before you give your bank account details and Social Security number.
- Report any incidents of online payday loan scams immediately. Notify the Better Business Bureau and perhaps your bank if a bogus debt collector is trying to collect money from you and making any threats. Inform local law enforcement officials if these threats are serious.
- Inform your bank or card issuers without delay if you find any unauthorized transactions in your bank account and credit or debit card statements. The payday loan lender must be able to provide consumers service and not become a source of rip-offs or inconvenience to the borrower.