Warning! 6 Signs of Online Personal Loan Scamming
Online loan scams remain a threat to many borrowers. In fact, it has never been worse than during this time of the coronavirus crisis, where people are using the Internet more, and, at the same time, suffering from financial hardships.
Reputable lending companies and brokers must register for a license in the state where they operate a business, as required by the Federal Trade Commission (FTC). Otherwise, the lender may potentially be a scammer.
Six ways to spot an online personal loan scam.
No Physical Address
Check their physical addresses. Most reputable lenders tend to plug their address into Google Maps, while scammers would rather be untraceable to avoid legal consequences.
Like any reputable lending companies that offer loans for people with bad credit, loan scammers also target high-risk borrowers, especially those who tend to make late and partial payments.
No Credit Checks Required
If a lender’s website doesn’t have a padlock symbol on the search bar (where you can find the page link), that means it isn’t secured. Moreover, a page isn’t secured if the page’s address starts with “HTTP” instead of “HTTPS.”
When a lender demands upfront fees for insurance, collateral, origination, processing, or paperwork before a personal loan is disbursed, it’s a scam. Reputable lenders may charge you for fees, but it would be directly deducted to your loan amount.
“Guarantees Loan Approval” is among the tell-tale signs of a loan scam. In fact, most lenders, including online companies, would not guarantee 100% approval when it comes to personal loan applications.
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