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Avoid loans online scams

15th September, 2010 - Posted by admin - No Comments

Payday loans, cash advance loans, or paycheck advances, are short-term cash loans. People who need emergency cash in between payroll pay periods, look to payday loans online to secure loans. These situations can cause scams and the term is called “phishing,” with the intention to steal a persons personal and confidential information. One of the more common scams is when a payday loan lender offers a payday loan at rates that seem to good to be true. After the borrower has submitted their basic information to the loan company, then instead of sending you the money, they tell you that you were not approved for the loan – this is a passport to identity theft. Even though your need for immediate cash is important, take time to compare rates from different payday lenders, and carefully read the terms and agreements.

Some cautions to avoid loans online scams are:

a. Look for a web security seal or web logo which backs legitimate sites that work with loans online transactions. Click on the logo or seal to make sure that it connects to a valid web site domain for SSL certification, such as Truste, KwikChex and VeriSign.

b. Make sure that the payday loans online web site is not part of a third-party lending company. Third party lenders will take your personal information and sell it to other lending companies, but you do not know into whose hands your confidential information will land.

c. Be cautious when transacting with electronic funds transfer (EFT) information. EFT transactions go directly into your bank account, it is better to use experienced and secure loans online payment methods such as PayPalUK or UK Forex.

d. Never send payments upfront.

e. Check the online lending companies with the Which? organisation or the Consumer Protection Association UK. These organisations let consumers know their rights, or if they fell victim to a scam, they serve as mediators between consumers and businesses to resolve the disputes. They also provide precautions.

f. To further avoid loans online scams, make sure that advance payday loan sites have a physical address, telephone/fax number to contact them.

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1. Avoid Arrears Using a UK Payday Loan Service