Payday loans are often the only solution for borrowers who face a cash crisis, and they are a quick solution. Yet, there are cons who will try to trick you, and your cash crisis is likely to blow out of proportion. This is about payday loan scams, and it is important to know how to avoid them.
If you find an unsolicited offer in your mail, the best thing is to completely ignore it. The same goes for email spam, which is phishing for desperate persons. Speaking of the Internet, it pays to exercise caution. Many payday loan companies offering their services online are legitimate, whether you find an offer online, apply over the phone, or go with a cash advance store. However, some of the self-proclaimed lenders are out there only to take your money.
One important point to remember is that legitimate payday loan companies will not ask you to pay up front. Do not pay up front before you make sure the money borrowed is deposited into your account. Otherwise, you risk losing your money rather than taking out a loan. Taking your time to find legitimate lenders is important. You should do your homework before you give your personal or bank account information.
If a caller with a foreign accent demands that you pay back the money you owe, this is often a scam as well. They usually have a heavy accent, suggesting that the call originates overseas. Callers may threaten to send the police to your house or that your credit score will be ruined. They may even threaten that you will be arrested. In some cases, the persons who call you claim to be law enforcement officers. Scams of this type are quite common. Do not negotiate with the caller or give any personal details.
It is important to know your rights and know what a payday loan company cannot do against you. In fact, what they do is illegal. A payday loan lender cannot repeatedly call to annoy or harass you. They are not allowed to claim to be attorneys or threaten you with harm or violence. And it is against the law to claim that the borrower has committed a crime. How to act if this happens to you? Request that the caller sends you all details in writing. This way, you can file a complaint against them. Refuse to verify your credit card, bank account, and personal details over the phone. No reputable company will call you and request this. You may contact an attorney as well if things get serious. An attorney will help you in many ways. For example, if a caller knew your bank account number or driverís license number, you can ask your lawyer how to best protect your money and identity.