Looking at the lender’s history is most likely the last thing to do when your financial situation deteriorates. At that desperate moment, getting assistance is your only concern, it doesn’t matter who offers to help.
Shady lenders are everywhere. The number of individuals scammed is continuously increasing each day. This leads to the need for awareness to put an end to their unhuman operations. Most victims have poorly been frustrated by the loan scammers. No one wants you to go through that. This article highlights how to identify the shady lenders and give you 6 tactics of protecting yourself from these heartless vultures.
How Do You Identify the Wrong Moneylenders?
They don’t show interest in your credit reports
Checking the credit score is always the first thing a money lending institution looks at before accepting your loan request. Each money lender wants to know the borrower’s ability to repay the loan. Surprisingly, predatory lenders don’t ask for your credit report. They readily loan you money without much investigation as what Instant Loan mentioned in their blog, even financial experts discourage anyone from borrowing from organizations that don’t pay attention to credit. Don’t continue with any loan application if the credit card is not one of the requirements. As they say, think twice when the deal is too good to be true!
Charging penalties for early repayments
Usually, money lenders appreciate when the debtor makes an early repayment. Some may even pose a generous offer on your loan. On the other hand, fraudulent lenders are firmly against it. They penalize you for early payments. They do this to trick clients into delaying paying back so that they charge you high- interest fees for late payments. Ensure you assess the terms of fees charged before making any loan application. Otherwise, you’ll pay back twice the initial loan.
They ask for advance payments
Never be deceived into making advance repayments before being granted the loan. You can be lured to make upfront fees or launch automatic payments for a few months to cover their costs before they approve your loan. Although that is allowed in some financing and mortgages, don’t fall for it. Many people have made small advanced payments only for them to be denied the loan, yet they had already begun paying it.
They have undefined interest calculations
Every borrower has the right to understand the interest calculations while proceeding with the loan application. Be aware of how their interest ratings work. Fake lenders have unclear criteria that cannot be comprehended by the borrower. This allows them to pose additional interests without you knowing. Simply ditch any loan lender that fails to give transparent scheming of its fees.
6 Ways to Protect Yourself from Shady Lenders
Know the lender before borrowing
Failing to confirm details of the lender is the worst mistake to make when loaning money. Confirm he is legitimate and permitted by the government. Ask him questions and study the response he gives. Legal creditors give straightforward and satisfying answers. On the other hand, fake financiers have shady repliers and dodge most of the questions. Another way is making good use of the internet to look for any information you want. Nowadays, social media provides all you need to know about any organization. You might be surprised to see the lender you approached is the first in the list of fraudulent moneylenders. No matter how confident you are with it, to get full assurance of its legibility.
Report to the law or any related authority
Let the police know immediately you find out the person you have been loaning from is a swindler. But be careful with the people you talk to, only tell the persons concerned with money frauds. Keep in mind these people are violent and can harm you if they feel threatened by you. Give the police every single detail they need to know. This includes all the transactions you made with them, their location, user name, and any information you might be told to provide. The more cooperative you’ll be, the faster the conmen will be arrested, and the justice you deserve will be granted.
Be calm and act less
Panicking is the worst thing to do at this time. Calm down and let the authority do its job. Don’t be tempted to confront the shady lenders. Letting them know that you are aware of their dealings will expose you to danger. No schemer wants his secret to be known. So, they’ll make sure to get rid of you to cover their dirt operations. Try as much as possible to relax and continue playing along with their say.
Stop paying the money
There is no point to continue paying them after discovering you have been played. Talk to the authority and find out the progress made concerning the lenders. From there, stop making the payments. However, don’t make it so evident to the lenders that you’ll never give them money. Let it appear as if you are still struggling to get the money you owe them.
Take precautionary measures and report their threats
It’s expected the counterfeits will threaten you after you stop paying them. Make sure you report to the police immediately you receive their calls or texts. That could be strong evidence against them and a significant lead to their hideout.
Getting conned is a terrible thing to encounter. It can damage you emotionally, financially, and mentally if not treated early. Talk to an expert and get tips on how to avoid such occurrences. A monetary adviser can also give you necessary pieces of advice on how to attain back a stable financial status.
The Bottom Line
Never allow shady lenders to take advantage of your helplessness when facing money hardships. Familiarize yourself with the moneylender before applying for it. Don’t be ashamed of seeking help if you find out you have been dealing with conmen. Anyone, including financial experts, can be a victim. Forever be careful and protect yourself from shady lenders!