Tuesday, June 25, 2019

Personal loan scams, what are the red flags?

Personal loan scams have become big business, but there are red flags to watch out for from Bankrate.com.
 First: The lender isn’t interested in your payment history. One of the upfront disclosures you should see is the requirement to pull your credit report before lending you money. If they don’t seem to care that’s a problem.
The lender isn’t registered in your state. The Federal Trade Commission (FTC) requires that lenders and loan brokers must register in the states where they conduct business. If a lender you’re interested in does not list any states, you could be dealing with a loan scam. 
The lender demands a prepaid debit card. Some scammers will require you to provide a prepaid debit card, claiming they need it for insurance, collateral or fees. Legitimate financial institutions may charge a fee for your application, appraisal or credit report, but those charges are deducted from your loan.
The lender’s website isn’t secure. When visiting a lender’s site, always look for: A padlock symbol on any pages where you’re asked to provide personal information.
The lender pressures you to act immediately. Don’t fall for the urgency plea. One of the hallmarks of loan personal scams is giving you an immediate deadline to take out the loan because the offer expires quickly — possibly even the next day. Legit lenders will not pressure you. If you think you’ve been scammed go through your state attorney general’s office. 

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