If you need to generate money for a certain need, then a personal loan can be a good way to do that. Personal loans can be secured by loan companies, banks, private investors, and certain types of online lenders. It’s important that you educate yourself on the personal loan scams and ways that you can avoid them. In the year 2000, personal loan scams ranked as the #5 most common type of scam. Americans lost $464 on average because of personal loan scams. The Federal government has since then been working hard to inform the public about such scams.
The most common type of personal loan scam are the ones concerning advanced fees. Most victims of these types of scams are too embarrassed to report it to the authorities. Victims are obviously very angry. They really needed the money or else they wouldn’t have applied to begin with for a personal loan. They are now out of even more money. Those who do end up reporting the scam are very frustrated because the thieves are seldom caught or brought to justice. It’s highly important that you report any instances of advanced fee personal loan scamming. If you fail to do so, you’re enabling them to do the same to others.
Advanced fee personal loan scams are intended to work on those who are badly in need of a loan. More than half of these victims are under the age of thirty. The lenders tell them that they are guaranteed approval, but that there’s a fee involved for processing the loan. This so called “fee” can be for a couple hundred dollars or more. With the technology we have today, it’s pretty common for the operators of these types of scams to have fake websites as well as 1-800 numbers for you to call. They will even send you letters that look professional and official, hoping that you will fall for their scheming.
You’ll be sad to hear the stories of those victimized by advanced fee personal loan scammers. One lady was taken advantage of in such a way who had just been laid off. She was also about to be evicted. When she found another job, she applied for a personal loan so that she could catch up with the rent. She paid the lender all of her first paycheck from her new job for the “processing fees,” as they promised her that she was eligible. Needless to say, she was very disappointed and upset when she found out that the lender had taken off with her money. She was also evicted.
You can protect yourself from falling victims to such scams by being extremely careful who you try to borrow from. Do research to find out who the reputable companies are, especially if they’re an online business. You can look them up with the Better Business Bureau to make sure they’re real and legitimate. Make sure that you enter their exact name down to the letter. The scammers commonly make their names sound very similar to an actual established lending company that you may already be familiar with. Don’t let yourself be tricked by that.
If you have no credit or bad credit, don’t believe that you can get a loan just like that. If it sounds too good to be true, then it probably is. Never pay any fees up front, not even if they promise you that you’ll be approved. They may even tell you that the fee they’re charging you for will take care of the first month’s payment. You need to be aware that a “high risk deposit” isn’t real. Lenders must actually allow you to access the funds for a minimum of seven days before they can go after the first payment. Check out the legitimacy of any fees associated with the lenders with the Federal Trade Commission. If you’re facing financial problems ahead, look for advice from a highly regarded credit counseling service instead of a lender.
25 Nov
