Helpful Tips for Spotting a Payday Loan Scams
Even if you have not ever sought a payday loan, providing your information online to a payday loan site can be dangerous, if the site is a scam. These types of Payday loan scams are set up to steal your information and then sell it to various third parties who may have malicious intentions to use it. With that being said, understanding how to recognize a scam is essential. Some clear signs that you have found a scam are highlighted here.
Do they have a license?
States that have made payday loans available to consumers also offer licenses that a business can apply to, certifying them as a payday lender. You should check into this license when you are seeking a payday loan service, since all licensed businesses must meet all laws and rules or face having their license revoked.
Most Payday loan scams will not have any type of license and will likely be operating from outside of the United States. This means that they are not regulated by any type of regulations or rules. You should avoid these types of businesses at all costs.
Be Aware of Hidden Fees
Prior to signing any type of document or contract, you need to read the terms that have been presented to you. Hidden fees are one of the primary ways that predatory lending companies will try to scam unsuspecting consumers. The majority of states have a maximum amount that the fee-per-hundred-dollars can be. Be sure that you know what the fee is so you will know if you are facing charges higher than what is legally allowed.
Never Choose a Company that Asks for Money in Advance
Have you ever heard of the horror stories of someone receiving an email from a long-lost heir in Nigeria? If so, you also know that these individuals likely lost hundreds of dollars. The fact is that Payday loan scams will use this type of trickery as well. If you find a payday loan service that ever requests any type of fee upfront, for an application fee or taxes, you should avoid them at all costs.
When you are aware of the most popular types of scams, you can also avoid them at all costs. If you need a payday loan, be sure you do not fall victim to the many scam sites that are out there simply trying to take advantage of an unsuspecting consumer.