subject: Avoid Payday Lending Scams [print this page] Scammers abound in the payday lending business. This is due to the fact that many people find themselves in a financial crisis and have no other options available to them but to take out a cash advance loan. They find themselves in urgent need of cash, so they hurry to find a lender, and they never stop to check the credentials or reputation of the lender.
If you are in need of an online lending company for your financial woes, here is a list of 5 important points that will help you avoid being scammed by an unscrupulous lender.
1. Make sure the lenders website carries the CFSA seal. The CFSA (Community Financial Services Association) of America is a national organization dedicated to promoting regulations of the payday lending industry and consumer protections through CFSA's Best Practices. Basically, they monitor lending companies and prevent customers from being scammed by lenders.
2. You shouldnt submit numerous applications to different lending websites in the hopes that your chances of being approved for a loan will improve. Many lenders charge a fee to process the application. If you are charged a processing fee by every lending company, you may be wasting money you cant afford to part with.
3. Be leery of third party lending sites. These sites take your loan application and submit it to different lending companies. While this sounds like a great idea, you have no idea who they will be giving your personal and bank information too.
4. Make sure that the lender you want to borrow from has their physical address listed on their website. If the lender is legitimate, he will have no problem disclosing any and all their contact information. If you find a lending company that doesnt display an address or phone number on their website, then you may end up being scammed if you used them as your payday lender.
5. Before you submit an application, check with the Better Business Bureau to make sure the company is legitimate. If the company is not legit or has been caught in a scam, the BBB will have complaints listed from past customers on their website.
If there are things in the application that you do not understand, you may want to ask someone to help you figure them out. Since cash advance lenders make money off of late fees and penalties, you will want to pay back the loan when it is due so that you can avoid having to dish out extra money.
