In this age of technology, getting a short-term or personal loan has been easy and quick. You can apply manually or through an online channel. While applying through an online channel you get the loan amount directly in your bank account. There is the official lender (banks, NBFI, etc.) and scammers. Make doubly sure whom you are asking for a loan from.
You should know the difference between the two i.e. Legal or authorized and illegal lenders.
Does a loan fee scam exist?
You will be surprised at how a lender who is lending you money can scam you? You can be duped by a loan fee scam and in the process lose a lot of money and waste time. When you apply for a loan that guarantees you money even before checking your credit scores is a scam. Be alert you are heading for a scam. It is one of the best red flags you should be aware of.
The lender expects that you will pay back the loaned amount and for this, they rely on your credit score. A lender is not so stupid not to check your credit score and give you the loan. If he is giving then definitely it is a scam.
Know the difference between a fraud loan fee lender and a legit loan lender.
If you apply for a loan from a legitimate loan lender first thing that will come to your mind is whether the loan receiver will be able to repay the loan amount or not. He will lend you if you have a good credit score.
On the other hand, the scammer will be least bothered about whether you will be able to return or not. He knows that you are desperate for a loan and you will fall for this type of scam.
Ignore any newspaper ad, website, or caller who guarantees you a loan in exchange for an upfront fee. Do not pay through wire money or money orders.
How do fee loan scammers make money?
Out of the blue, the scammer will contact you through phone, email, or SMS and offer you a loan. They mostly target those persons who have bad credit scores or are unable to obtain mainstream loans.
There are different ways scammers make money. He will charge you under the pretext of pre-processing charges. Or will tell you about paying insurance for the loan to be approved. Or upfront demands administrative charges. In short, all fees upfront will be charged which he will tell you to pay through Western Union, iTunes vouchers, or Google Pay.
How to judge if the lender is legitimate or ill-legitimate?
On the internet, there are reviews on different loan fee lenders. Browse through them, read the articles/blogs, and do your research. Because once the funds are pocketed by scammers it is hard to recover. If the lender demands an upfront fee then he is a scammer. Legal lenders will first scan your capability to return the money. They will ask you for documents to judge that. They will check for your credit score and bank transaction history. The immovable property you own, your present salary, etc.
If you are contacted by phone or email demand the company’s physical location.
Have you been scammed?
In case you have already been scammed consult our firm for assisting you to get your money back. You qualify for a chargeback only if you paid money through a debit or credit card or other banking channels. You should have proof of communication with the scammers or suspicious agents.
At the All Scam Reports site read the reviews before contacting any lender. Most governments have a list of people/firms/establishments who committed financial frauds. We offer you a write-up on the company and the country they operate in.
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