Beware Of Scams In Personal Loans

Personal loans are very good means to obtain funds for a number of our requisites, which can be secured through banks, companies offering loan, private parties and also through website lenders. One should have knowledge of the personal loan scams and how to restrict them. In the year 2000, this kind of scam was ranked #5 in the US and each individual scammed lost $464 on an average. Since then the Federal Government is trying it best to educate the people about this.


A number of people fall prey to the collection of advanced fee personal loan, which is a common method where they escape with your money and the people never take this matter to the authorities due to shame. They also feel angry about it as they are in need for funds and would not have applied for a loan at all. They now have a meager amount to start. In case a victim reports this incident he gets frustrated as no legal action is taken. But it is necessary that the borrower does inform this to the authorities to stop these activities from reoccurring.

 

The main targets of these scams are those who are desperate for a loan, those who trust all the people, illiterate and those who have a bad credit and are aged below 30. The lender guarantees that he can help them out but involves a fee which may be a few dollars or even more. These people have their own websites and more than 800 contact numbers too. They dispatch letters which may look very official but are not so. And you consider them.

 

It is heart breaking to hear to the tales of the people who have become a prey to this. A lady was evacuated and with her new job, applied for loan. But her rents were caught. When the repayment was done with her first salary, she was charged a huge in the name of processing fee. But later they escaped with the funds and she was totally upset.

 

To prevent from becoming a prey to advanced personal fee loan scams one must borrow from a reputed firm and confirm with the Better Business Bureau and enter their business name properly as they have listed. Generally these scammers use identical names of reputed lending companies.

 

Do not have faith in what you hear. If you have a bad credit or no credit, you may be made to pay a hike in interest rate then. But there is no necessity to pay a loan fee before you apply or have it sanctioned. The fee paid in the first payment is termed as high risk deposit by some personal loan scams. It must be understood by the applicant that such things do not exist.

 

The lender must extend a deadline of 7 days to start receiving the repayment. The Federal Trade Commission will be of great assistance in this regard. Always consult a well known non-profitable credit counseling service about financial difficulties rather than the lender.















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