The payday loan industry is booming right now more than any other financial institution. This is because the economy is not favorable with many and a payday loan is providing an alternative source of quick cash to help people meet their needs. With the high patronage of online payday borrowing, its obvious different kinds of lenders will show up online to defraud unsuspecting borrowers. How can you avoid being a victim?
You should understand that there are third party sites connecting consumers to direct lenders. These third party sites may not have all these details. All they do is connect you to a lender. When you’re connected to a lender, make sure all these details are there to ensure your security.
First, you should avoid any lender that asks you to pay for loan application review and approval. A payday loan application and approval is absolutely free. You should not pay a dime to get approved.
You should avoid filling out so many forms on different websites believing that it will increase your chances of getting approved. This is not good for your security. Your information may get to the wrong people and later used against you.
When you connect to a lenders website find out if the site has the Community Financial Services Seal of America (CFSA). This organisation regulates payday loan practise and protects consumers in the United States.They monitor the industry to identify and sanction payday predators before they take advantage of the people.
On a lenders site, look out for the physical address where they can be reached. Any genuine lender will have his physical address and contact telephone numbers boldly visible on his site for you to see. Any lender that fails to disclose his address is suspicious.
Prior to filling out a payday loan form you should take every precaution to protect yourself. Make sure you read through a lenders terms and conditions to avoid being a victim of hidden charges or extortions. If you’re not satisfied with the terms, choose another lender.
Finally, look out for the lender rating on the Better Business Bureau website or try to see if you can see an online scam report about the lender before you deal with him.People that have been scammed usually publish their experiences and complaints online for all to see. Cross check the lender and be sure he’s clean.
These are the few tips to protect you from payday scam.