WHAT PERSONAL LOANS YOU SHOULD BE AVOIDING?
Stressing over medical bills that are not covered under your insurance? Or are caught up in the situation to have your car repaired which isn’t insured? This is where personal loans have you covered. Nevertheless, scammers take complete advantage of situations when people are in a dire need of money; taking them on an unfortunate ride.
Luckily, throughout the ride, they keep raising red flag every now and then. And if you are attentive, you can identify a scammer right away if you look up for the following signs closely:
As per law, it is a requirement for lenders to register with their states in order to operate there. However, if you find a lender online which isn’t registered in your state but is somewhere else, don’t respond to them. It’s a clear-cut fraud.
The loan offer is incomplete
Before signing on the dotted line be certain that you have gone through the loan papers thoroughly. The Truth in Lending Act asks the lenders to put in every single detail from the terms to the final costs in the contract. While going through the process of paper work, check if any of the detail is missing. Or are there any spelling mistakes or grammar errors? If yes, then you about to be scammed.
The lender calls or knocks at your door
Legitimate lenders advertise online, through newspapers or by other means that reach out to mass. Just in case you are receiving a phone call, that is, the lender is approaching you personally, that is likely to be a scam. Note the number from which the call came and check for the caller details here.
Another means via which the fraudulent will approach you is at your doorstep. Common sense is that someone running a loan business won’t have time to reach out to you at such personal level. Right?
The lender asks you to act on immediate basis
Emails stating; “the offer ends soon” are to be discarded sooner. No valid lender asks you to act swiftly, rather they propose steady rates that go well with your credit. They facilitate their potential customers instead for pressurizing them to act right away. Pressure tactics are utilized to manipulate one to act immediately without thinking which minimizes their chance of getting caught. Click here to read about how to find a suitable lender.
The lender shows no interest in your payment history
A genuine lender will ask you to pull forward your previous loan histories, before lending you any money. They want to make sure that you are complaint in your dealings as well as abide by all the rules and regulations. On the other hand, the scammer won’t demand any such detail.
The best way to deal with scammers is to bring them to the notice of your lawyer, who will report them to higher authorities.