Safeguard Yourself Against the Vicious Payday Loan Scams – Stay Safe and Secured

By:
on Jul 24, 2015
Updated: Sep 17, 2019
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Are you someone who needs fast cash? If answered yes, don’t fret as you’re not alone. There are innumerable payday loan lending companies that will offer you cash right away. However, it is better to not let the temptation of quick cash get into the way of your common sense. You might be sure about your repayment abilities when it comes to cash advance loans, but are you aware of the large number of shady companies that are waiting to deceive you and cheat you with your dollars? Payday loans scams are exceptionally common throughout the country and hence if you’re considering the way of payday loans, you should take into account the simple ways of protecting yourself from the dubious companies. Here are some points that could help you stay safe.

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Watch out for a license: All those states that offer payday loans provide a license that the business organizations can apply for. It is this license that can certify them as a direct payday loan lender. When you’re speaking with the representative of a payday loan company, you should take the required steps to watch out for their license. A licensed business should always abide by the laws of the state. Most shady lending companies will either be unlicensed or will operate from somewhere outside the US. These are the services that you should avoid borrowing from even when you are in a tight financial situation.

Check for hidden fees: Before signing on their documents, make sure you read the terms that have been presented to you. When they charge you hidden fees, this is one form of predatory lending and these companies wait for the right time to deceive the most unsuspecting customer. Most states have a maximum cap on how high the fee can be per $100 and this is why most customers tend to overlook the fine print. Always watch out for such hidden charges while taking out a payday loan.

Avoid paying upfront fees: Have you ever read a story where a person sent off a lump sum off to Nigeria since he was told that he had inherited a large amount of money? Well yes, the entire country is replete with examples of payday loan scams and such trickeries. An untrustworthy company will often ask you to send them money to cover the taxes and other application and processing fees. Beware as this is a primary sign of a scam company. An authentic company will always collect fees when your payments come due.

Check their rate on BBB: Although this isn’t always the perfect way of determining reliability and authenticity, yet the Better Business Bureau can certainly be a good resource for the consumers. There you will get information on the company, whether they had any previous violations and how the customers have registered their complaints. This is just a reality check that should be performed before taking the plunge.

Therefore, if you don’t want to be a part of the payday loan scam, you should be careful and consider the above mentioned precautions. Staying safe will help you preserve your hard-earned dollars.

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