Rise In Online Payday Loan Scams

Updated on November 16, 2018 in Scams
0 on October 21, 2015

Quit a number of people opt to seek financial assistance from online payday loans as they are easily accessible. Apart from the fact that they are at higher risk of facing excessive interest rates and possible extra fees associated with these short-term loans. The bigger risk for these lenders is the fact that their personal information may end up in the hands of cyber criminals. Experts have also noted that the extremely complex information lenders have in store has lured payday loan scams.

It is nerve-wracking how nowadays, not merely customers who apply for an online payday loan become exposed to this kind of breach, but even those who have simply considered the option or researched about online payday loans. They put their information at risk by requesting for further information about the loan offers. Clearing houses and Lead generators gather personal information of borrowers then sell the data to legitimate payday loan lenders. This only creates an avenue in which payday loan scams have access to your information by either hacking or purchasing.

Having access to this much customers personal information that may consider taking out a loan or have already taken one, puts their bank accounts at substantial risk. Some will even go to the extent of paying out the loans as guaranteed, as they continue to sell out customers’ personal information. It becomes challenging for customers to determine when an online payday loans lender is legit and when they are defrauding and individual.

Consumers can protect themselves from online payday loans scans by verifying their licenses before applying for a loan. Authentic lenders display state licenses on their websites for verification purposes. If an email is written demanding immediate payments be made or states incorrect amounts, then it is most likely a scam. Keeping Anti-virus, Anti-malware and junk mail protection software on all your computing devices could also be a major way to avoid being swindles off hard-earned cash. It is also important to go through your bank accounts, credit and debit card statements and any other personal information you may have provided to ensure there are no unauthorized transactions.

In the meantime, if you suspect you are a victim to a payday loan scam, it is important to report it to the local authorities and to the lender the scam claims to represent. Consumer attorneys also think there is a need for more oversight of the online payday loan business and it is hopeful that representatives of online lending will expose all online payday loan scams.

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