Signs of a Payday Loan Scams

Updated on July 29, 2017 in General
0 on October 21, 2015

When caught up in a bad credit situation it may difficult to get that bank or credit union to approve a loan. Payday loan lenders will often have similar standards before offering you a loan but there are those signs that you would need to look out for before getting caught up in a fraudulent deal. It is true that conditions of each lender may vary but one who is not genuine is always easy to distinguish as they may have one of these traits.

The most frequent will include, a lender who asks you to pay additional fees upfront in order to receive the loan by justifying it to be processing or collateral fee for your bad credit. Other pay day loan scams will pressure you to act immediately for instance by trying to convince you to send them money or give out your personal information before you even fill any papers. They will regularly request that you pay for fees by wiring money or directly pay to an individual which could be very difficult to trace if trying to sue for fraud. A legitimate lender will never ask for any form of payments before receiving your loan.

Comparable to other businesses, pay day loan scams aim at persuading you to apply for a loan with them by using enticing words on their advertisements. They will claim not to care about your credit history or guarantee you that your loan will be approved regardless of whether you have a job or a bank account. Legitimate lenders never assure you of a loan approval before assessing your credit history or at least verify if the information on the application forms.

Payday loan scams will often ask for your personal information like social security number, credit card or bank account number, date of birth etc. over the phone or internet. It is extremely important that you don’t give out any information unless you are familiar with the company and know why they would require such information. Once you give out personal information they may use it to syphon money from your accounts or open accounts using your name.

If a lender hesitates to give you his/her physical address, then it most likely a fraud and you should avoid doing business with them as they may not even be registered. Regardless of how persuasive a lender may be, always do ample research to avoid being scammed.

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