Thursday 27th of February 2020

Be Aware of Payday Loan Scams

While most payday lending businesses offer a legitimate, if controversial, product to their customers, there are those who are looking to prey on unsuspecting consumers. These criminals will typically pose as a legitimate lending business and will usually find a safe haven either online or as a telephone short-term lending service. Again, most lenders are lawful but there are some signs that you can watch out for to know if the company you have chosen is official.

What to Watch Out For

Payday loan businesses almost never ask for money up front and there are usually some restrictions on who can get a loan. If you find a lender that requires that you pay any type of fee up front, no matter how small, it should raise a red-flag. If the loan guarantees approval even before you have began the process, another red-flag should be raised. The typical process for getting an advance usually requires that you provide particular information, typically about your bank account(s), employment information such as a pay stub, and there are some forms with important terms that you will have to sign. Some legitimate businesses may require some sort of fee up front but this is unlikely. If you had the money to pay the fees, you would likely not be taking out the loan.

Also beware of businesses that are hard to find, either in person or online. If it seems like they are difficult to contact or locate, they are probably acting discreet for a reason. Even if they micro target only a relatively small number of people, they are sometimes able to make significant sums of money. Once someone finds out they have been the victim of fraud it is usually too late. The fraudulent person or group will have collected their money and will have moved on to the next location or scam.

Always Be Careful When Your Money Is Involved

These are just some of the ways that you can be duped into paying fees or giving out information to fraudulent lenders. As with all fraud, it is ever-changing. Criminal organizations will continue to come up with new and innovative ways to get their hands on your money. When taking out funds, particularly online, always check out the credentials of the business you are interested in. Usually with a little research, it is not difficult to find out if the business is legitimate. Always be careful when your information and money is at stake.