AS you are all aware, payday lending business involves high interest rate and short term loans. Great part, over 70 percent, of payday lending is done online, and as you all know, internet is a place full of scammers and people who would like to profit from your mistakes and your lack of judgement. Payday lending as any other online business that involves money transfer is full of sites that are created to take your money and leave you penniless.
There are many ways through which people may use payday loans to trick you and make you pay them money you don’t own, and number of such cases is on the rise. A large amount of these scammers will use information they obtained through you applications for payday loans and they will try to convince you that they are representatives of those organizations, and they will also introduce themselves as representatives of other collection agencies or even law enforcement agencies in order to scare you into paying. They will try to scare you will possible jail time, or only arrest if you don’t listen to them and do what they say.
In reality, by threatening you with arrest, which will not happen, they are doing illegal activity. You should know that you don’t risk arrest or jail time no matter what kind of unpaid loan you have. Right reaction to that kind of threat is to go and report it to local law enforcement, where you should file a complaint to NLC fraud center, and they will work on catching and punishing those responsible for fraud attempt. Even though you have evaded a fraud you should go through and report it, because other people might fall for it, and some people have fallen before you, and doing anything that will help in stopping those scammers is a good thing to do.
Once the scammer calls you that means that they have obtained your personal info, and that is identity theft. That is another illegal action which can hurt you in the long run. The government has guides that will help you once that happens, so go and look at it.
Payday loan scam
If you apply to a payday loan online you are risking your personal information to unknown people. There are fine lines between legit payday lending sites and scammers, so be aware. Online payday loans have higher interest rates than normal payday loans, so if you have a lender nearby it is better to take a loan from him rather than to risk fraud with online payday lenders who charge more.
If you receive a call in which the other party claims that they are representative of some law enforcement department end the conversation and call that department directly. That is the easiest way to find out whether the caller is scammer or not. If you have some ongoing payday loans and you get a call from someone claiming to represent that organization, call that organization directly and see whether the call is made by them.