When an emergency comes to us, we simply grab the instant options that could help us to manage the situation. In such a situation, payday loans are extremely useful as they can give you with immediate cash and relief from your money worries as well. And this is the main reason payday loan scams are rising so fast. Remember, accumulating too many payday loans may lead you into knee deep debt. Because people do not show their commitment to repay their loans on time. Thus, you should always keep an emergency fund to avoid such financial crisis. But, those who are already in distressed financial condition should be aware of rising popularity of PDL scams. Read more to get more information on this subject.
There are certain signs that can help you to understand the scam:
You need to be more protective in order to stay safe from these types of fraudulent activity. Here are some ways you can avoid the payday loan scams. Such as:
You need to have enough knowledge on the subject before taking any steps. Sometimes not having sufficient knowledge can lead to serious problems like scams. So, try to check out all the details of the payday loan lending company before choosing it. Make sure that you check with the Better Business Bureau to know whether or not the company is authentic with providing you with their services. Don’t just rely on customer review that are available on the Internet.
Find out whether or not the payday loan service provider is state license holder. State law certifies the payday loan offer as a direct payday lender. In case of any problem you’ll be staying protected. Scam payday loan providers are unlicensed and monitoring from outside of the US. So, they are out of the state’s law and regulation. There's always a chance of scams if you borrow money from them.
The most common payday loan scam that is becoming increasingly popular is the lenders demanding the fees before you have the money. In most states in the US, this is a completely illegal process. You must receive the money on the payday loan and then pay any kind of fees. All these practices are done to gain undue profits and take advantage of you, as a debtor. Therefore, make sure that no credible and trustworthy lender will ask for fees until they have provided you with the fund.
Another way to protect yourself against payday loan scams is to look for the lending alternatives. It is not that the only short term lending option is a payday loan. You can also borrow money from friends and family members so that you do not require paying high interest rates on the loans. Though payday loans are easy to get as there is no credit check involved in it, yet accumulating too many payday loans may get you into serious financial trouble.
Take a close look in the terms and conditions before signing the agreement. There are many payday loan providers who used to keep hidden charges and can mislead you. Every state has their certain rules on fees and charges. So, you need to check thoroughly if you’re paying the right amount to the company.
Try to talk to the lender over telephone or visit their office to meet in person. Make sure that the lender has a particular email address and a physical address so that you can contact them. Also try to know if the company is based on US.
Try to be skeptical regarding any personal loan offer you get. Scammers are doing their work very smart to make you fool. So, ask questions to become more clear about each and every legal term related to payday loan. Remember, there is a regulatory body that regulates the payday loan lending companies in every state. Also try to note the person’s voice over the phone. If the person hesitates to disclose the physical location, company details, then disconnect the line right way. Try to make informed your close relatives and friends as well. Thus, they also can stay away from this type of scams.