Scammers advertising loans with advance fees seek out people who are in great need of money. They promote their products and services in local print materials and legit looking websites online. They entice people to grab their offer by using words like “guaranteed” and phrases such as “easy credit.”

Oftentimes, websites offering advance fee loans asks their applicants to fill out an application form that requires personal information such as social security and bank account numbers. Then, the applicants are victimized when they are informed that their loan is approved but need to pay an advance fee amounting to several thousands of dollars before they get it. After they make the payment, they never get the loan they were promised or they are even asked to pay more.

In order to avoid these scammers, the Better Business Bureau warns individuals seeking for loans to be wary of the following lenders:

1. Lenders who request upfront fees. Fees may be required by a lender but not prior to completing the loan application. Be cautious once you are asked to send money through wire transfer or money order.

2. Lenders who do not give their contact information. You must always ask for a physical address of their office and their phone numbers. If they cannot provide you with any of these, it may be a sign that they are trying to avoid law enforcement.

3. Lenders who commit to provide a loan despite of the applicant’s credit history. Lenders operating legally will usually not guarantee approval before application most especially if the applicant has poor credit rating.

4. Lenders that do not operate within the U.S. Most of these lenders use fake U.S addresses or P.O boxes.

5. Lenders who pressure their applicants to take immediate action. Scamming lenders will ask you to rush in making a payment to them and sending your information before serving any paperwork. Make sure to check the company’s background before providing any information. As much as possible obtain a written contract of your loan.

6. Lenders who use names that sounds like other legit companies. They do this to confuse you and tempt you to obtain their products and services.

It is tempting to obtain advance fee loans especially when you are in need of money. However, be cautious and think about it deeply. You can check with the attorney general’s office to find out if the lenders are registered. You may also check if they are legal through the BBB.

Enhanced by Zemanta
Share and Enjoy:
  • Print
  • Digg
  • Sphinn
  • Facebook
  • Mixx
  • Google Bookmarks
  • Blogplay

Related posts on loans for people with bad credit:

  1. Payday Loan Debtors are the New Target of Scams Payday Loan Debtors are the New Target of Scams Caution is what the Connecticut Department of Banking requires from their clients today. There is a new group that are targeting debtors and threatening them of being imprisoned unless they pay their payday…...
  2. Online Payday Loan Scams Online Payday Loan Scams Center for Responsible Lending and the Pew Charitable Trusts have been avid in fighting against abusive and illegal activities done by payday loan stores across various counties. Payday lenders in California who have been charging high-cost loans at…...
  3. How do Cash Advance Payday Loans Work? Understanding Cash Advance Payday Loans Several lenders can offer you a loan without the need for you to go through a credit check. A cash advance loan is one of these loans. Before taking this kind of loan, you have to…...
  4. Better Choice Payday Loan: A Better Alternative to Pennsylvanians Rob McCord, Pennsylvania State Treasurer is continuously admiring a payday loan program of a credit union. This program has been reported to save its members worth $15 million. The $125 million Cross Valley Federal Credit Union was visited by Rob McCord to…...
  5. Payday Loan Scams Revealed Payday Loan Scams Revealed has always been avid in warning people about fraud and phony payday loans and finally their efforts have been fruitful. The Federal Trade Commission has been successful in their court hearing last February in closing a $5…...

Tagged with:

Filed under: payday loans

Like this post? Subscribe to my RSS feed and get loads more!