Are You Being Scammed? – Know The Difference Between A Legal Payday Loan And A Scam

Many people who have considered taking out a payday loan to help with their financial troubles are often concerned about scams and having their identity stolen in the process. In fact, there have been many reports about people being threatened, intimidated, and flat out lied to. This recent influx of scams surrounding payday loans may scare people away from the loans entirely, however simply understanding the various methods scammers use, and what is actually legal, can help protect you.

How Scammers Are Operating

Scammers operate in a variety of ways, but no matter what their methods are, they will only work when you let them. To successfully scam you, a con artist needs you to believe that they are either an official representative, a law enforcement officer, or a collections agent. Either one of those positions will give them authority, and often when they make their claim people refuse to question them. They will then go through their predetermined method of coercing you into giving them money.

To get your information, scammers will usually take your data from an online application suite, or landing site. This will give them more than enough information to attempt to scam you. Here are a few of the more recent methods scammers are using:

• Threatening to arrest individuals who are late on their payment, or who do not send money to them by a certain date
• Setting up fake lending sites online to steal identities
• Call individuals who have a loan and then give them fake repayment methods, fake numbers, and fake emails

How To Protect Yourself From Being Scammed

When it comes to any sort of loan, you should always apply in person. Not only is it more secure, but you are able to see that the place is legitimate. Often online payday loan advances often have much higher interest rates, making it a better financial decision overall.

If you do apply for a payday loan, make sure that the place has actual reviews. Don’t just rely on Google to search for reviews, as often scam businesses will post fake ones. Rely on friends, family, coworkers, and even social media options to inquire about a potential lender!

Should you receive a call from your lender about a missed payment, or about new details, then you should immediately double check the number. If you are unsure of the number, simply hang up and call the company directly to speak with a new agent, or the one you were previously talking to. This will ensure that you are actually speaking to the right company, not some scam artist who managed to get his/her paws on your information.

Lastly, you need to understand that you will never be arrested for failure to repay any loan. This is a technique that scammers use into bullying people into paying them. Threatening is not only a scam technique, it is highly illegal so call the police immediately if someone is attempting this on you!

Author Bio

Rachel is a finance graduate and pursuing her masters in accountancy from a leading university in Bristol. She reviews pay day loan companies like Full Pocket for their service and writes resourceful blogs helping others to understand the in and out of attaining a Pay Day Loan from lenders like Full Pocket

 

Category: Loans