There are scam payday loan services out there, and you need to protect yourself before you make a decision. Here’s how you’ll know it’s legit.
Nowadays, it seems like there are more and more people who are looking for ways to scam others out of their hard-earned cash.
There are so many different types of scams. No doubt you’ve heard of them. Nigerian banking schemes, Ponzi schemes, and tons of others.
However, one of the most insidious types of scam is the Payday loan scam. These scams are dangerous because they can be hard to spot.
That’s why we’re going to teach you how to spot a payday loan scam before it’s too late.
Look Out For Hidden Fees
Before signing your payday loan agreement (or any other type of loan agreement, for that matter) make sure you read the document carefully. Do not sign anything until you feel you have a full understanding of the terms outlined in the agreement.
One of the chief ways that predatory companies fool their clients is to hide fees in the loan agreement. They do this because they know most people won’t take the time to read the entire document.
Don’t fall into this trap.
Find out exactly what fees you will be responsible for. As a matter of fact, some states have limits on the amount of money a company can charge. Find out what your state requires and check to see if the agreement you’re signing complies with the law.
Check With The Better Business Bureau
The Better Business Bureau is a great resource for those who want to avoid being scammed. You don’t want to rely on the BBB alone, but you should still check to see if the company you’re dealing with has any complaints lodged against them.
The BBB can provide you with information on the company. This way, you can see the complaints that the company has. Not only that, you can see the nature of the complaints that are being levied against the company.
In some cases, you might not be able to find the company on the BBB’s website. This could mean that they haven’t had any complaints. It could also mean that the company has not registered with the BBB. If this is the case, you want to go deeper and do more research on the organization.
Watch Out For Advance Fee Scams
Sometimes, companies will approve your loan, then contact you to let you know that you have some type of fee that you have to pay.
There are a few different types they may have:
- Insurance fee
- Three months advance payment
- Processing fee
They will ask you to pay this through an electronic transfer. But if this is a scam, will pay their fee and the loan will never materialize and you will have no way to get your money back.
In some cases, this might be a fee that you will pay if the broker attempted to get you approved for a loan, but wasn’t able to. This fee might just be for the work they did in trying to get you approved. This isn’t abnormal, but like I said before, you want to check all of your fees in the loan agreement. –
The Lender Doesn’t Care About Your Credit History
You’ve probably seen companies advertise loans regardless of your credit history. In many cases, these are scams. The purpose of a lender is to make money. That’s why they care about your credit.
If a lender claims to be able to get you a loan regardless of your credit you need to be careful. Do further research to determine whether or not they are legit.
Avoiding scams doesn’t have to be difficult. By doing your due diligence, you can protect yourself from scams.
If you haven’t heard of LittleLoans, check them out. They’re a trusty source, and you’ll find more info there.