Beware of Payday Loans Scams

Payday Loans ScamsPayday loans scams are very sneaky, and if you’re not careful you could allow the wrong people access to your bank account information and other personal details. The problem is that just about anyone with the gumption can start up a website and collect your information if they can convince you that they’re the real deal.

That’s why it’s sometimes best to go with names you recognize. These companies spend thousands of dollars branding their business and advertising so that you recognize them and choose them over others. You may be enticed by the lower rates of another unknown lender, but remember that if it sounds too good to be true, it probably is. And since you’re the one that has to make the first move, all the risk is on your end.

What do we mean by you’re the one that makes the first move? Simply that you’re the one that offers up the information before the lender is put in any sort of risky position. If you’re going with an online payday lender even the legitimate companies are going to need your banking information before they can transfer the money into your account. This gives shysters the perfect excuse to try to get you to cough up these important digits. If they can get you to authorize deductions from your account you could be in for a fight to get your money back.

How to Avoid Payday Loans Scams

The first thing you’ll want to check for is whether or not you’re on a secure server when you are entering your personal and banking information. This alone does not mean you’re at a scam-free website, but it helps prevent your information from falling into the wrong hands. You’d be amazed how many sites purport to be payday lenders, but don’t even host the application page on a secure server. It is an easy and inexpensive for a legit company to encrypt their site, so this is a big red flag and cause enough not to give your information to them.

Identity Theft
Payday loans scams have a number of ways to get at you, but one of the easiest is identity theft. Because you have to supply accurate personal information, and your banking details if you are getting an online payday loan, you leave yourself open to someone taking this sensitive information and using it nefariously. Many sites may look like a bona fide payday lender, but they are really phishing sites that are only after your information.

Go In Person
Going in person to a local payday lender is the absolute best way to make sure that you avoid any sort scam. In fact, when you show up to a payday lender in person they are the ones trying to size you up to see if you’re trying to scam them out of their money. My how the tables are turned when you move from doing business online, to doing business at a brick and mortar lender. It’s also nice to put a face to the lender and to build a rapport with them. You’ll often find some nice people working in the front lines of payday lending offices.

Go With a Recognizable Brand
Going with one of the nationwide payday lending chains like Check N’ Go or Advance America means that you know you’re not going to get scammed. Advance America is even a publicly traded company, so they’re definitely going to follow state regulations and maintain their reputation. Some companies may seem like they’re on the up and up, but the rates and fees that they’re charging are even worse than at a payday lender, so they aren’t really a scam, but they are taking far more money than they should be, really raking you over the coals. That’s why it’s best to do business with trusted companies that have been around for several years.

Some people might not care if someone tries to assume their identity, if they already have bad credit and get denied all the time. And it might not be a big deal if someone gets access to your bank account if it’s already overdrawn. But these conditions won’t last forever, so it’s best to get into the habit of protecting your information so that when things do turn around your information is protected and no one can cause you any hassle.

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