Safeguard Yourself from Payday Loan Scams

Updated on September 19, 2017 in No Category
0 on October 21, 2015

Once in a while we may find ourselves in a financial predicament. The occurrence of an unexpected accident or medical emergency or car repair could often lead to us borrowing from cash advance or from payday loan lenders. Although their interest rates could be high, we may often result to them if salary is not until the next month or even a mere week. The delay in income could lead us to go beyond our set budgets leading us to no other choice other than borrowing. The unfortunate bit is that nowadays there is a downside to these payday loans as borrowers have now become bait for payday loan scams or fraud stars.

Fortunately, the Department of justice has come up with a load of information to protect from different types of payday loan scams. Payday loan scams artists will often place a phone call to the lender in a bid to extort money. It is important that if you receive a call from someone claiming to be a debt collector, always ask for the person’s name followed by the address, the company or lender they are representing and if you certainly have an outstanding loan. A legit lender with all this information will provide it but if they don’t you should hang up.

The other step to follow is to call the lender yourself through the number provided on your loan paperwork to ascertain that the information given by the previous caller is correct and up-to-date. Ensure you also confirm your loan status with the company. If the loan amount claimed is considerably higher than the debt quoted, then it is most likely a scam. To be more certain of the amounts, check with your credit report and if the debt claimed is not as listed, then it is probably a payday loan scam.

It is very important that you do not get scared if the caller gets offensive or threatens you with any form of legal action or to arrest you. Request that a well-documented notice of the debt be sent to you by mail. Make it clear that they should not contact you again about the loan debt unless they have all necessary information. If you are suspicious that the caller is a payday loan scam artist then report to the nearest police station and to the company the caller purports to be representing. You do not have to fall victim of payday loan scams.

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