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Loan Scam
Learn How to Avoid Loan Scams
Who is a Loan Scammer?
Loan scammers are lenders from lending companies who assures to give you a best deal even in your bad credit situation by demanding advance fee loan, insisting on very huge interest rates, requesting for private information such as bank account details, credit details, direct contact addresses, bank balance etc.
How loan scammers attract customer?
If you wonder how loan scammers attract customers here are few examples of how loan scams really work.
1. Most of the Loan scammers contain an attractive business website, company logo, professional documentations etc.
2. They come with the propaganda of “Whatever your credit status might be, we are here to help you to come out of debt by easy approved loans within a minute”.
3. They will publish their adds in TV channels, Newspapers and Magazines, when you respond to those adds you will be directed to a “third party consultant” who would ask you to check the website to enter the details required.
4. When you land at the loan scammer company website, predominantly they will demand bank account information and other private data.
5. They will ask you an upfront fee like loan application fee, down payments etc by promising you to offer a loan even at your worst credit situation.
Tips to avoid loan scam
1. Do not enter your personal information like bank account details, contact addresses, social security number, bank balance status etc in any online lending company website, email, fax or telephone enquiry.
2. A trusted lending company or a lender will not ask you for an upfront payment in the form of loan application fee or down payments. If any company is asking for an upfront fee you can reject that company in the first place.
3. Advance fee would be asked to send to individual accounts in western union money transfer or money gram than a business name.
4. The loan scammer can give loads of ads in TVs, Magazines, Newspapers, Classifieds and radio shows. Avoid responding to unsolicited loan adverts or letters.
5. If a loan company says your loan is guaranteed without processing any documents at your poor credit status, you can be very sure that you are dealing with a loan scammer.
6. Do a detailed study about the lending company before getting involved with them. Online research is an excellent resource to find if a lending company is fake or not.