Payday Loan Scams
How to spot unscrupulous payday lenders:
Unregistered Lenders:
All payday lenders are required to register with the Office of Fair Trading before they can start their loan operation. For this reason, make sure that you check if the company you are doing business with has a Customer Credit License by the OFT.
Low Interest Rates:
Interest rates are one of the first things that applicant consider when they are planning to obtain cash payday loan. In general, the interest rates are high and you should be wary of companies who are offering extremely low interest rates. Remember, if the offer sounds too good to be true, then it probably is. Most of the time, these companies are dodgy and must be avoided at all cost.
Contact Details:
Most payday loan companies have their contact information on their website. This information includes the phone number as well as the address of their office. Websites that do not list any contact information clearly on their site must be avoided.
Extra Fees:
Any additional charges that will apply during the process of getting instant payday loan will automatically be debited to the money that will be deposited on the applicant’s account. If your lender is requiring you to pay application or loan transfer fee way before you actually register for a loan, then it is best to walk away. You may be dealing with con artists.
Upfront Fees:
No lender should require a fee up front and avoid dealing with any company that does even if they are offering you a better deal.
Loan Details:
In general, legitimate payday loan companies will provide a detailed account of the repayment process to their customers. The detailed account will also specify the interest rates that will apply for the loan. On the other hand, dodgy companies will do what they can to hide any important information in the fine print. Customers will often be caught unaware because they failed to read the fine prints thoroughly.
