It’s normal to become vulnerable to accepting any deal that seems good when you’re going through a rough patch or in dire need of money. But don’t be fooled, some offers may be so good that they are not real at all. It’s always better to calmly study all your possibilities before falling into loan scams.
After you read this article you will learn:
- What are loan scams;
- How to avoid being scammed;
- What can you do if you’ve already been scammed;
Like any other type of scam, personal loan scams happen when someone pretends to be a “professional”, offers you some service or exchange and finally they disappear without giving you your part of the negotiation.
In the case of loan scams, people pose as “lenders” and take advantage of people who are going through a bad financial situation. They can offer you a very good loan opportunity, and ask you for money in advance without giving you anything of the amount that they were going to lend you, for example.
Some personal loan scammers are very sophisticated and build an online website around a false brand, while others directly offer their services as individuals online through forums, advertisements on social networks or, directly, contact their victims by e-mail or WhatsApp.
The network is full of alleged lenders whose sole objective is to take advantage of the need of users seeking financing. They promise large sums of money, very low-interest rates, or they’ll offer you a loan with no credit check.
But the reality is that the client will never receive the loan and will end up losing money.
Luckily, there are some red flags that you can identify in time to avoid loan scams.
The way of advertising their services
If someone offers credit through social networks, WhatsApp, or email without the client having previously requested it, it is most likely a personal loan scam, especially if the contact number is foreign.
Lenders do not normally offer finance to residents of other countries, since, in case of default, it would be more difficult for them to recover the money and it is a risk that a serious lender would never take.
Besides, most of the time these types of lenders present themselves with foreign names, automated requests and responses, and messages with spelling or grammatical errors.
That cover letter is already suspicious because a serious entity or lender will not send messages plagued with errors, much less will they determine the amount of the loan without listening to or studying a previous request for their client’s profile.
A serious lender does not grant loans without ensuring beforehand that their clients have the necessary creditworthiness to pay them back.
Banks or reputable lenders do not request the following type of data by mail, SMS, WhatsApp, telephone, or social networks:
- Bank keys.
- Credit Card Number.
- Security token.
- Coordinate card.
- Bank account number
The loan is too good to be true
These lenders often shock their victims with extremely cheap large loans. An excessively low price, immediate loan approval even with a bad credit history, and a very good fee should be suspicious if you haven’t started a loan application process.
A legal lender usually determines the amount and interest of the credit based on the profile of the client and the purpose of the loan, so an offer that is too attractive without a prior study is at least suspicious.
They will ask to pay in advance
No legitimate lender will ask for the advance payment of any commission or upfront fees. None.
It does not matter if they request the payment of an opening or management commission or if it is the payment of insurance-linked to a credit or even their fees. If the lender requests any type of money upfront or cash before handing over the money, be it under whatever pretext, you have to be suspicious, as it is likely a scam.
Sometimes many of these would-be lenders will demand payment through companies like Western Union, which makes it easy to send and receive money from abroad.
When this happens, the common thing is that the scammed person doesn’t hear about them again when they have been sent or worse, that the scammer asks for even more money.
They don’t care about the solvency
It is another hook that false lenders use, because, unlike what happens with credit institutions or serious lenders, they do not care about the financial situation of users and promise large sums of money without even evaluating the risk involved in lending. that amount.
They don’t offer you a contract with the conditions
All credit that is contracted should be supported by a contract that includes its conditions: its interest rate, the term, the monthly payment to be paid, and the commissions.
Before granting any type of loan or demanding payment, a serious lender must offer a prior contract that collects all this information.
If they offer a contract, it must be analyzed carefully. For example, if the lender is American, but the contract is written in another language, you have to be careful.
The best thing you can do if you are the victim of a financial scam is to file a complaint and keep proof that you were indeed scammed.
Keeping the evidence is very important because without any type of evidence it is very difficult for a complaint to be processed.
Once the report is made, the corresponding entities should comply with everything necessary to find the scammer, and in this way have your money back.
The best thing to do when choosing a lender for financing is to go only to legitimate entities and distrust those lenders who offer their loans through informal channels (social networks, forums, e-mail) and who promise to deliver large amounts of money with a very cheap interest.
The best personal loans on the market will allow you to get money at the best rate with the guarantee of being a client of legitimate lenders.