Identity theft and personal loan scams are a growing trend, and more people are falling victim to these loan scams every single day. There’s a huge amount of money in the loan business, and scam loan companies are cashing in. However, there are several tell-tale signs of loan scams that can help you avoid them, and we’re going to outline them below.
No Credit Check Requirements
- Lenders use your credit history to determine the likelihood of paying the loan back, and spotty histories allow them to charge higher interest rates over the life of the loan. Scam loan companies will tell you that you don’t need a credit check to get funding. They just want your personal information, and they don’t care about your creditworthiness.
You Get an Incomplete Loan Offer
- All lenders are required by law to provide complete terms of the loan they offer you. The National Consumer Credit Protection Act requires them to disclose the loan terms and the final balance you’ll pay, including interest before you sign anything. If you don’t see these details, or if you see spelling and grammar errors, be wary.
- “Your offer expires soon, and you must act now!” These are pressure tactics. A legitimate lender will offer you steady loan rates that depend entirely on your credit. Loan scams try to trick you into signing up for the loan without reading any of the terms of service or conditions that come with the loan. It’s a great way to trap you into high-interest rates and impossible payment requirements.
Upfront Payment Requirements
- One popular loan email scam requires that the person getting the loan pay upfront costs. The scammer may claim that these payments are for things like processing fees, origination fees or insurance. Anyone that asks for payment before they process the loan is going to take whatever you send them and disappear.
- There are laws that require all lenders to register with their State or Territory before they can do business with anyone. This helps monitor what promises they offer, and it helps to regulate their terms. If your lender is completely online, you can’t find a physical location, or they refuse to give you one, don’t go with them.
Emails Out of the Blue
- Scam emails are one of the most effective ways people fall victim to scammers. Any email that promises you bonuses, commissions or a cut of profits if you send money is a scam. You could also get a loan offer with a fantastic rate and a link to fill in your information and apply. Never open a link or click on anything that comes from someone you don’t know.
Contact Quickle Today!
Do you want more signs that you have a loan scam company contacting you? If so, reach out and get in touch today!