Your guide to avoiding loan scams
It’s no secret- more loans get rejected than approved. It’s the name of the game and only the client’s that meet the lender’s exact criteria find a loan. But what about the mass amount of clients that are not credit fit? Are there legit companies out there that offer loans for low score clients? The answer is most likely no.
It’s a rule that all lenders that deal with consumers must register with the N.C.R. The national credit regulator protects consumers to ensure they maintain healthy credit levels. They set the lending criteria that all lenders must follow. So consumers that are not credit worthy in the eyes of the N.C.R. will not find a loan with a registered member.
We are in a digital revolution where cyber crimes and scams are on the rise. We’d like to remind you that criminals know their game and they study their market. They know exactly what to say to convince their victim to part with money or information. Now that you can see its not likely to find a loan unless you are credit worthy, you can start to understand why people who don’t qualify for loans are an easy target for scam artists.
After working with loan applications for a few years you get to learn the tricks of trade. You notice a lot of misleading methods that companies use to get clients to part with their money. This not only damages the industry but also destroys the client’s trust.
This is why at Premier Finance we are busy breaking through the trust barrier by providing our clients with a quality service at no cost. We see ourselves as ethical business owners, standing up for those who need us most. We are here to put an end to online scams and prove that good service still exists.
It’s simple – if it sounds too good to be true then it probably is. Protect yourself and look out for red flags when using an online loan service. To help you stay safe we have some guidelines that you can follow:
- Always deal with N.C.R. registered members or their partners. This will ensure you always deal with a regulated lender that is compliant. Look out for this information on the website and if you are not sure, ask before you apply.
- Do your due diligence. Make sure that the loan company has a physical address presented on their website. You can also check out the business’ Facebook page for reviews, comments and to get a feel for the type of company that you are dealing with.
- Never pay any upfront fees for a loan. It is illegal to charge any upfront fees according to the law.
- Make sure you give consent for a credit check. Compliant online sites will ask you to complete an application form. The form will include proof that you have given consent for a credit check. This is a minimum requirement and all lenders keep this information in case they get audited. So if a company offers you a loan without credit check consent or even a credit check its a warning to rather walk away.
- Always take your time and read the forms you are filling out. Look out for the fine print to make sure you know that you are in fact applying for a loan. There have been cases where companies were offering legal aid with a loan finding service. They setup websites to make you think you are applying for a loan but instead you are signing up for something else. Most clients only find out after their account had a debit order deducted. That’s why it pays off to be present in the moment. Rather check your application twice before you part with your sensitive information.
- Avoid working with anyone that charges you a fee from your payout for your confirmed application. N.C.R. registered lenders will pay their brokers a commission when the loan is successful, a cost that you are not responsible for.
We hope you will find this information useful in protecting yourself against loan scams. Remember to also follow your gut feeling- if you feel uncertain then walk away and find a company you are comfortable with.