Scammers are thriving in the financial industry as this is often the place where the money is. Taking advantage of people such as lenders and borrowers and leaving these people at a loss. Scams are one of the things that a government tries to prevent but is actually hard. This is why regulations and policies are implemented to be followed by licensed and legitimate lenders. It is also a borrowers responsibility to know these regulations so that when they encounter lenders who are deviating can be reported. Minimizes the chances of scams creeping in.
Here are a few things you can watch out for to avoid getting involved in payday loan scams as a borrower.
- When a payday loan lender asks for payment on fees upfront.
Payday loans are suppose to help the borrower from bridging the gap between cash inflow and expenses. If a payday loan lender asks for payment before proceeds are released, then the chances are high that this one is a scam in process. A licensed payday lender’s intention is to help it’s client with their needs rather than earning upfront.
- Payday loan collection of payment.
There are times where a payday collector will call you for the collection. Instead of getting your account debited for the payment, a payday loan collector will meet you and issue you a receipt for the payment, only to find out that the collector isn’t connected to the lender. Often, these types of scams are connected to the lender by giving your information. This allows the collector to know your number, personal information which they can use to convince you that they are legit employees of the lender.
- Application forms used to “phish” for your information.
Online lenders should be treated which more care than those whom you transact through their office. Online lenders can pretend the legitimacy of their business but is actually not a real business. Try checking out other online lenders and see how the application works. Online lenders will have a common process. If one online lender is requiring a different approach on the application, you may want to rethink applying through their website.