Payday loans are good short term emergency loans. They require minimal qualifications and the loan approval is almost always immediately. Pay day loans can be access through the internet where lenders have their websites set up. The problem is, today, there are many companies posing as lenders but are thieves waiting to scam people out of their money. The tips bellow will help you identify and avoid online fraudsters.
Check for the license of the lender. If your lender owns a legitimate online service, they must follow all the required laws concerning money lending. A payday loan lender without a license is either trying to scam you out of your money or is trying to avoid certain government regulations. Other times, you find that the lender does not belong to your country or state and is running an illegal business. In case of any problems, you will find it hard to take legal actions against an unlicensed lender. Also, unlicensed lender s may apply their own laws meaning their services are not protected and may charge you more interest than you need to pay.
If any payday loan lender asks for advance cash for registration or services, do yourself a favour and move on! The only payment you are supposed to make is when you are repaying the loan and the interest. Fraudsters will also ask you to pay the loan before the deadline. Ensure you read the terms of the payments before you make any commitments you may regret
Payday websites that ask for personal and confidential details are definitely scams. People create fake payday loan websites to try and steal from you. Once you give out your information online, they use it to access your banks and take away all your money. Others may sell your information, or subscribe it to services that will charge you straight out of your bank or credit card.
Some lenders will put hidden fees in their agreements. If they are hidden, that means the lender has something illegal or mischievous going on. Sometimes, the hidden fee might be legitimate but is placed there to prey and steal from unsuspecting customers. The fees are usually higher compared to other payday loan companies. Learn about the interest rates, deadlines and late payment charges before you take on a loan. Some lenders have overcharged interest rates and late payment charges.
The company may be legitimate, but what about their track record? Before you register with any payday loan website, check for any past or present violations and the track record. You can do this by checking on the rates and reviews of the company. If the negative comments and suggestions surpass the positive ones then you have something to worry about.
Lastly, ensure you go through the entire website before you sign up for an account. Half of the times, you will not be able to tell whether an account is real or is run by a scammer. The giveaway can be a little as the contact information! Fraudulent lenders provide false or no contact information in their details. Real payday websites will have a physical location where you can visit, look at their legal documentation and enquire about their terms