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Tips that protect you from Payday Loan Frauds

The following tips should protect you from payday loan frauds and reduce the risk of you becoming a victim of fraud. Most personal loan frauds are in the form of identity theft and these are the most dangerous. Because most lenders are brick and mortar businesses they are tightly regulated by the federal government. So any fraud perpetrated by a lender is quickly remedied. So keep these tips in mind when applying for a personal loan.

  • Account takeovers are the most common fraud type this happens when a thief gets your information from a personal loan application and buys products and services using your credit information. This can be detected by scanning your billing statements after applying for personal loans
  • After you fill out a personal loan applications, find out the way the company gets rid of them. If you are not confident in the way the bank or lender keeps or shreds them do not do business with this lender. Some lenders may be careless with your personal information.
  • Do not get into a personal loan contract if someone contacted you. This can happen by unsolicited phone calls, letters or emails. If you did not find the lender do not get a loan from them.
  • Be aware that there is increased risk of being defrauded on the internet as the anonymity of being online makes it easier for fraudsters to trick you.
  • Do not give a lender any money before hand. If a personal loan lender wants an application fee or processing fee up front look out. Lenders do not often ask for these types of payments for personal loan.
  • When a lender requests you to send money to another place by Western Union or by MoneyGram look out for a fraud.
  • If you sent money once do not send again many fraudsters will try to get you over and over again.

Only deal with well known lenders. A credit union or banks that you know or have known are always the best choice.

Those who believe they have been defrauded should report what happened as soon as possible. This will prevent others from being taken as well. Personal loans are generally a good way to get money when you need it. But, due to folks who want to take advantage of borrowers’ personal loan fraud is all around and thousand are tricked every year. There are unfortunately malicious individuals out there who would try to take advantage of you. Payday loan fraud is frighteningly common, and amounts to millions of dollars in losses every year.