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Mar 19, 2021 · When researching lenders, look for these 8 warning signs that are common indicators of loan scams: 1. No credit check required. If the lender is advertising that you can borrow money without undergoing a credit check, be cautious. Legitimate lenders will thoroughly assess your ability to pay the loan back by looking at your credit score, income ...
- 5 Methods to Identify Personal Loan Scams | Fairstone
In honour of Fraud Prevention Month this March, we asked our...
- 5 Methods to Identify Personal Loan Scams | Fairstone
- What Are Personal Loan Scams?
- How to Spot Personal Loan Scams
- How to Combat A Loan Scammer
- How to Search For A Legitimate Personal Loan
A personal loan scam is a way for fraudsters to obtain your Social Security number or collect fees without lending you any actual money. Some of the most common personal loan scams involve fraudulent lenders acquiring your information or funds by promising a loan without a credit check. Others make unsolicited loan offers and then collect upfront f...
Personal loan scams are pretty common, but, luckily, there are ways to spot them before you get caught up in one. Here are some warnings to look for when identifying a loan scammer.
If you suspect you’ve been exposed to a personal loan scam, it’s important to report it to authorities so others don’t fall victim to the same threat. Combat a loan scammer by following these steps: 1. Compile documentation of the scam.As soon as you suspect a loan scam, assemble copies of emails, loan documents and voicemail recordings from the su...
If you need a personal loan and don’t already have a relationship with a bank, research several lenders to find one that best suits your needs. Take these preliminary steps to ensure you are applying for a legitimate personal loan: 1. Read online reviews 2. Get recommendations from friends and family 3. Review the Better Business Bureau’s rating 4....
- Amy Sorter
- The lender guarantees approval. Truly reputable lenders make it clear that they’ll need to look at your credit, sometimes getting reports from all three major credit bureaus (Equifax, TransUnion and Experian).
- The lender isn’t registered in your state. The Federal Trade Commission (FTC) requires lenders and loan brokers to register in the states where they conduct business.
- The lender demands payment upfront. Some scammers have been known to require prepaid debit cards, gift cards or banking information from borrowers. Generally, the scammers claim they need the information for insurance, collateral or fees.
- The lender calls, writes or knocks. If you get a loan offer by phone, through the mail or even through a door-to-door solicitation, be on your guard. According to the FTC, it’s illegal for companies to offer a loan in the U.S. over the phone and ask you to pay before they deliver.
Mar 5, 2021 · In honour of Fraud Prevention Month this March, we asked our Compliance team to put together a checklist to help Canadians identify a credible loan offer and avoid financial scams. 1. Upfront fees. If your lender is asking that you send a deposit before receiving your loan funds, or for you to pre-pay a certain amount, this is a warning sign.
Sep 17, 2024 · Avoid Upfront Fees. Personal loan scammers may assure you that they can get you the loan you want, no matter your creditworthiness, but you’ll have to first pay a fee for either the loan ...
Mar 26, 2024 · 7. Identity fraud. A slightly different approach again is to steal your personal and financial details – perhaps via a phishing attack. And then to use them to take out a loan in your name with ...
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Nov 1, 2023 · How to protect yourself: Review the lender’s website to understand all the application requirements. If it sounds too good to be true, it probably is. 2. Upfront fee in exchange for a “guaranteed” approval. One of the most common personal loan scams involves asking a borrower for an upfront fee before the loan is issued.
