Five Warning Signs of Payday Loan Scams
With all the people who are experiencing financial turmoil due to the recession, loans and debt settlement plans have become increasingly popular. One of the most popular forms of loans is the payday loan. If you plan on getting a payday loan, then you should be careful of these 5 warning signs of a payday loan scam:
1. Advance fees
One of the most obvious signs of a fraudulent payday loan company is when the company asks for up-front or advance fees that you need to pay for loan approval. In numerous states this is against the law, so don’t trust entities that ask for your money before approving your payday loan.
2. Companies that are not listed as reliable sites
Perhaps the best way of finding a scammer is to check out websites like the Better Business Bureau, which compile information on consumer feedback, ratings, and reviews to determine how reliable and trustworthy companies are. If you get bad feedback on a company, then look for another, more reliable company to work with.
3. Lack of information on company website
It’s essential to check the company’s website before getting a payday loan with them. Check for information on privacy policies, server security, physical address, phone numbers, and customer service to ensure that you are dealing with a legit, secure, and safe payday loan company. If this info is missing, it may be a sign of a scam.
4. E-mail spamming
Another clear sign of scams and frauds is if you get spam e-mail, or any unsolicited e-mail from the company that advertises their products and services. Most legit and reliable companies don’t engage in sending unsolicited e-mails, so these may just be phishing attempts to steal your personal information and financial information.
5. Non-law-abiding companies
Finally, it’s important to know the laws and policies regarding lending, borrowing, and proper company conduct to ensure that you don’t get scammed. The moment you find out that a company may be bending or disobeying the law, don’t even give it a second thought — abandon the company and look for another one.
Related links:
How To Avoid A Scam Payday Loan – Tips for avoiding payday loan scams
Payday Loan Fraud – Don’t Fall For The Cheese! – Tips for avoiding payday loan fraud
Ways of Avoiding Payday Loan Scams – Precautions for avoiding payday loan scams
Scam Targets Borrowers of Payday Loans – How scams target payday loan borrowers
Caught Up in a Payday Loan Scam — Dangers of payday loan scams