A signal that the numerous Western economies still haven't recovered from the worldwide recession is that smaller, more exacting money lender operations are doing more business year over year. That isn't to claim that absolutely all of these smaller lenders are scammers, but the market has its proper share.
But these banks are a type of necessary evil in many communities. In numerous communities, it's what makes putting food on the table practicable. For most this kind of lending is the one thing that keeps them off the streets.
So as these activities rise it's more important for borrowers to be well placed to detect a fraudster from a legitimate funds provider.
Let's start with a few red flags. Shall we say you're sifting through web results for a credible payday bank and you are feeling you've found one. But when you go to contact this person, it feels like all he's more inquisitive about your identity and personal identifiers than issuing you a loan. Another clue is: He doesn't ask for a copy of a prior payslip but requires all of your private identifiers such as:
- Your birth date
- Your social security number
- Your present address and your prior 3 addresses
- Mother's original name
- All your email addresses and telephone numbers
These pieces of information in some ways go over and beyond what a traditional background check on a payday loan will require. In fact , they are exactly the type of thing that an identity fraudster would require. He'd need your ma's maiden name to pass security checkpoints for opening up exciting new lines of credit in your name. The fraudster would need your e-mails and phone numbers in order to do the correct sleuthing and cross quoting about your identity online.
Another clue has to do issuance of the loan. If you provide all of your information to the pay day loan lender and aren't given a date or guessed time in which to expect the check or funds in return, this is surprisingly suspicious. This is after all a bank that you're presumably working with.
One more clue would be a supposed bank that somehow needs money upfront in order to receive cash at some later point.
Then there are the obvious signs:
- The lender can't provide any type of business license number
- The lender is not a member of any business or general lending organisation
- The pay day loan lender doesn't have a single physical address that isn't a PO Box
- The lender's supposed "ten years of engaging in business" is positively untraceable
- There are misspellings throughout the lender's website, which also employs copyright-infringed graphics.
But these banks are a type of necessary evil in many communities. In numerous communities, it's what makes putting food on the table practicable. For most this kind of lending is the one thing that keeps them off the streets.
So as these activities rise it's more important for borrowers to be well placed to detect a fraudster from a legitimate funds provider.
Let's start with a few red flags. Shall we say you're sifting through web results for a credible payday bank and you are feeling you've found one. But when you go to contact this person, it feels like all he's more inquisitive about your identity and personal identifiers than issuing you a loan. Another clue is: He doesn't ask for a copy of a prior payslip but requires all of your private identifiers such as:
- Your birth date
- Your social security number
- Your present address and your prior 3 addresses
- Mother's original name
- All your email addresses and telephone numbers
These pieces of information in some ways go over and beyond what a traditional background check on a payday loan will require. In fact , they are exactly the type of thing that an identity fraudster would require. He'd need your ma's maiden name to pass security checkpoints for opening up exciting new lines of credit in your name. The fraudster would need your e-mails and phone numbers in order to do the correct sleuthing and cross quoting about your identity online.
Another clue has to do issuance of the loan. If you provide all of your information to the pay day loan lender and aren't given a date or guessed time in which to expect the check or funds in return, this is surprisingly suspicious. This is after all a bank that you're presumably working with.
One more clue would be a supposed bank that somehow needs money upfront in order to receive cash at some later point.
Then there are the obvious signs:
- The lender can't provide any type of business license number
- The lender is not a member of any business or general lending organisation
- The pay day loan lender doesn't have a single physical address that isn't a PO Box
- The lender's supposed "ten years of engaging in business" is positively untraceable
- There are misspellings throughout the lender's website, which also employs copyright-infringed graphics.
About the Author:
Keline Woo had the misfortune of meeting a fraudulent moneylender while hunting for an individual loan. She wants to share her unlucky experience with everybody looking for a loan.
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