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Top Tips To Avoid Loan Scams In 2015 – Fast Action Finance

Some people may encounter desperate financial times, in which small businesses and families are looking for viable alternatives to stay afloat. However, this is also something that opens the doors to potential scammers who can scam their victims for thousands of dollars in return for a loan that never actualizes. While there are some scams that are easy to identify, there are a few exceptions. The latter can cause havoc to the financial life of their victims.

Certain loan offers their work in areas that are not regulated by the law and promise prompt service. The problem about this is how can you identify which ones are genuine? Thankfully, there are a few useful ways to determine whether you are falling victim to a scam or you are dealing with a transaction that is legitimate. The common thing to do in most cases is to follow your gut instinct. If an offer sounds too good to be true, it probably is, so think carefully before agreeing to provide your personal information.

Do ample research beforehand

Even though you may be under heavy pressure to get a loan as soon as possible, it is still advisable to take your time to research potential loan providers to avoid falling into a scam too soon. The best ways to start is to Google the name of the lender online, and add keywords such as complaint or scam. When you do this, the search results will return any problems other people have came across with this particular loan company, helping you make a better decision.

Do not pin too much of your hopes when searching online for the lender’s name, as little information can be found online about a certain lender. If a potential lender lacks online information, it means their reputation is not established yet. Hence, you should check with the financial regulators in your country or state to give you a better idea of who you are dealing with.

Believe it or not, mapping applications such as Google maps can be a valuable resource and ally when you are researching about non-regulated lenders. Simply enter the company’s name or address and observe it at the street view level. If it turns out to be someone’s residence, an empty lot or something that seems amiss, you should stay far away from them.

You may even go a step further by running a quick search of the lender’s website (if available) on WhoIs to determine when the website was built and the name the website is registered under. There are cases where scammers use a website as a temporary front for a week and then disappear without a trace with the monies of their victims. Hence, you should be extra careful when you are dealing with newly formed companies. Do not accept any offers too quickly.

Learn how to spot red flags

You should be cautious when you receive emails stating that you have been approved for a loan you have never requested before. That is a dead give-away, however some people may overlook out of desperation. These kinds of unsolicited emails can lead to loan scams as well as identity theft. Lenders like these are unscrupulous and will avoid direct contact with you or disclose their location. If either of the aforementioned is not readily available, be careful of what they have to offer.

When you apply for most loans, a credit check is often carried out to ensure you fulfill the one of the criteria needed for loan approval. If the lender only requests for you bank information, you might be in danger of being scammed.

Emails written in a peculiar style

When you receive emails as described above, you should keep an eye out on the body content, checking for grammar and spelling. Scammers typically have weird or bad writing skills as they might be based in foreign countries where English is not their native language. If you are prompted to reply to an email other than one shown in the header, you may have encountered a potential scam. If that’s the case, do not respond at all and contact your ISP as this is phishing attempt.

Conclusion

One important thing you should note is that you never have to pay an upfront fee for a particular loan. If the lender asks for money before depositing a promised loan, cancel any transactions immediately. Ensure that you are comfortable with the potential lending company before any personal or bank information is given to them. If you feel you might be a victim of scam, contact your local police department immediately.

There are safer ways to secure a loan in Brampton. In fact, you can apply for a loan using your motorcycle! Contact Fast Action Finance today to learn more information on how you can do so.