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Loan that’s offered under false pretenses
- A loan scam is a loan that’s offered under false pretenses. The scammer often hooks their target by making a big promise they can’t deliver on, or by hiding the actual cost of the loan. Loan scammers even use fake company logos, false caller ID numbers and other tricks to impersonate legitimate agencies and gain trust.
- 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, and employment history.
- No physical address. Search for the lender’s address online or in a directory. If you can’t find a physical location or clear contact information for the lender, consider this a red flag.
- Email address. If an email is coming from a personal email account (e.g. Gmail or Hotmail account), or the email address domain (the part after @) doesn’t match the company name or website, this is another clear warning sign of a lender looking to scam you.
- Spelling and/or grammar mistakes. While fraudulent lenders want to trick people in appearing legitimate on their website or in their emails, there will often be spelling and grammar errors in their communications.
Sep 12, 2024 · Key Takeaways. Personal loan scams attempt to defraud their victims or obtain access to funds through identity theft. Requests for upfront fees and guarantees that seem too...
Sep 29, 2023 · Personal loan scams are easy to fall for and can lead to financial loss and identity theft. Learn the warning signs, plus what to do if you’ve already been scammed.
- What Are Loan Scams?
- Loan Scams: Be Aware of These
- Types of Loans to Avoid
- What to Do If You’Ve Been Scammed
- How to Spot A Legitimate Business
- Consult with A Financial Professional If You Need Help
A loan scam is a loan that’s offered under false pretenses. The scammer often hooks their target by making a big promise they can’t deliver on, or by hiding the actual cost of the loan. Loan scammers even use fake company logos, false caller ID numbers and other tricks to impersonate legitimate agencies and gain trust. In offering you a loan, their...
Loan scams can take many different forms, but they often employ the same tactics. Here are the most common red flags:
Unfortunately, some of the most costly and predatory loan productsare perfectly legal and widely available to consumers. The following types of loans aren’t technically scams, but they’re high-cost and high-risk. At best, these loans should be considered an absolute last resort:
If you’ve been targeted by a scam, it’s important to act quickly. The following steps can help you minimize the damage and potentially recover what you lost: 1. Contact the companies involved:If you made a payment from your credit card or bank account, contact the creditor or bank immediately to cancel the transaction and initiate any necessary sec...
When in doubt, take some time to verify that you’re dealing with a legitimate business. Before entering into an agreement or providing personal information, look for the following evidence that a business is legitimate: 1. Better Business Bureau (BBB) reports or other official ratings 2. Positive online reviews 3. Professional communication, includ...
If you’ve fallen victim to a scam or a predatory loan, help is available. A Certified Credit Counselor can offer free, professional assistance in recovering from the incident, including guidance on how to read your credit reports and protect your credit scores. Many people fall for scams because they’re looking for real financial help and debt reli...
Jun 5, 2024 · You need to ask yourself: “Is this deal too good to be true?” If you’re doubtful of the legitimacy of the loan being offered to you, you need to trust your instincts. No lender can guarantee you a loan, not even the most accommodating one. No lender can offer absurdly low-interest rates or extremely large loans.
Mar 29, 2024 · Personal loan scams can hit you when you're down. You might need money for an emergency or to help pay for a large expense. Instead of getting the loan and paying it off over time, the scammers take your money or personal information and leave you even worse off.
People also ask
What is a loan scam?
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Can a personal loan scam hit you when you're down?
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How to avoid personal loan scams?
Apr 22, 2024 · 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...
