Due to the economic downturn there are number of people who find themselves covered with financial difficulties which force them to look for the external financial help. But there position was not so strong to get the credit from banks or traditional lenders. That is the main reason; they look for other financial option that lead them towards the loan scam involving bogus loans companies. Unfortunately, in the past few years the financial market have experience huge rise in these scams. There are numerous of people who fall in these scams as bogus companies take their advantage because they desperately need a loan to meet their personal needs.
These fraudulent organizations give promise of a 1 hour payday loan to the people which never materialize and make them a victim of large upfront fees. Once these companies got the money they disappear leaving the victim in the in a financial mess.
By keeping few important points in mind while availing the cash help you can spot the signs of scam and avoid being stung. Here are the guidelines to avoid loans scams easily:
- Beware When You Are Asked To Pay Upfront Fee
These scammers usually ask loan seekers to pay upfront fee as a process of getting the loan amount. If fraudulent claim to be a lender they ask you to pay first repayment in advance and ‘activate’ the loan. Once you pay the fee they suddenly disappear and leave you with no arrange loan.
- Never Transfer Payment In Unorthodox Manner
Most of the fraudsters pressurize you to transfer payment through unorthodox methods. Recently, there were many scams happened where victims pay fees using Ukase vouchers and Western Union. Therefore beware whenever any lender or broker asks you to do so.
- Be Very Suspicious About Cold Calling
Always be skeptical about the payday loans companies that come out of the blue and offer you guaranteed finances irrespective of your blemished credit history. If you applied for the loan with bad credit history then it is possible that your details been shared between companies and you led up in a scam. As a general rule, you must be suspicious of about any financial help that comes with the tag of ‘guaranteed’ in the outset.
- Treat Cheap Credit Offers With Extreme Caution
Always treat cheap credit deals with extreme caution as they can be scam. In order to catch your interest they offer you cheap deals that never materialize. So, wherever some great deal come up your way don’t consider yourself lucky as it can be scam.
- Check Credentials Of The Company Through Consumer Credit Register
In order avoid these scams you must use the Consumer Credit Register to check the credentials of the loan company you are about to dealing with. Most bogus loans companies are operated through online so never assume the legality of the company only on the basis of their website.
Nowadays, cases of loan scams are increasing day by day. That is why, it is very important for the loan seekers to follow some guidelines in order to avoid the loan scams easily.