Avoid pay day loan scams
1st November, 2010 - Posted by admin - No Comments
There are a number of reasons a person may want to take out a loan – perhaps they just lost their job and need a source of money, perhaps they had higher bills than usual, maybe they are paying for a one-time expense such as a wedding or they just want to take a holiday and do not have the money saved yet. Unfortunately bank loans can often take a long to process and pay out and they have stringent requirements on who can borrow loans. A pay day loan is a short-term alternative to a traditional bank loan. A pay day loan is offered by a private company and can provide individuals with the extra money they need even if they have a low credit rating or do not qualify for a bank loan. Sadly, the numerous people seeking a pay day loan are prime targets for scams. Scam artists will prey on those who are looking for a pay day loan and take advantage of the borrower’s need. There are a number of scams involving pay day loans and luckily many of them are easily avoided. The simplest pay day loan scam is for the scammers to set up a legitimate looking office that advertises as providing pay day loans. These companies will have staffers and loan forms and outwardly appear to be a normal business. But once the scammer gets personal information and bank account numbers they will not lend out the money and will instead steal the borrowers identity or charge an extremely high rate of interest, well above the norm. To avoid this scam and many others, simply research the company before giving out any personal information. Look up the company in the phone book or online – if there is no listing for the company is probably fraudulent. Try to find customer testimonials and reviews of the company and contact the local business association for more information. Another common pay day loan scam is when scammers manage to get a copy of a real pay day loan company’s client list. They will then call or e-mail the clients claiming to be from the company and ask for personal information and bank accounts. Never give out this information over the phone or e-mail, even if it appears to be legitimate. Hang up and call the company from the number on your records to find out what is going on. If the company truly needs to verify information you can go to the office to do so and be secure with your information. Read More