Be vigilant because loan scams lurk on the internet
There is one thing we can be sure of; loan scams are not going to go away. In fact we can count on exactly the opposite which means they will be on the increase and we will have to be more vigilant than ever. It is so easy for a scammer to take advantage in our technological age with email, internet banking and so on.
Loan scams target the most vulnerable
Sadly, loan scams will target the most vulnerable. When you are short of money and desperate for a loan you may not be thinking as clearly as you should. This is the time to be very careful because you can ill afford to lose money to an unscrupulous scam.
According to the Office of Fair Trading the number of loan scams is rising dramatically. Criminals have identified those who are desperate for a loan and because traditional financial institutions have tightened up on loans people are forced to look to non-traditional sources for loans.
Use registered payday lenders for your instant cash loans
Many people turn to payday lenders for payday loans. Payday lenders for instant loans who are registered and transparent are a safe bet but if you have not checked the payday lender to establish that they are registered you may come short. The scammers are asking for an up-front fee before they will “arrange the loan”. As soon as they have your payment they disappear and you are out of pocket.
Some legitimate payday lenders do ask for an up-front fee
Whilst there are legitimate credit brokers who do ask for an up-front fee you are warned to be extremely careful if you are not sure that the broker is legitimate. In the past the OFT has suggested a warning to consumers to give a wide berth to any credit provider asking for an up-front fee.
Loan Scammers only want to get their hands on your up-front fee and then disappear
Scammers are not interested in your credit history or your application, they simply want the up-front fee and then they will disappear. Since there are many legitimate short term, instant payday lenders offering their services it makes sense to use a registered payday lender. Check out the company carefully before you agree to anything. Ask for a landline number and a physical address. A legitimate payday lender will supply you with this information. If a company refuses to give you the information you ask for regarding fixed address and landline telephone number run for the hills! Don’t accept a mobile phone number.
We do not ask for an up-front fee. For more information see information on The Quick Loan Shop.