How To Protect Yourself From Fraud With Payday Loans
If you have received an unexpected invoice and are considering a payday loan to cover the costs, think again. Because, no matter how dizzy this bill is, these short-term high-yield loans could pose an even greater threat to your long-term finances. There are better ways to pay emergency costs even if you need bad credit.
But here’s the problem, even if you choose not to apply for a payday loan, you can still walk around. Yes. A scammer could get your information and try to take out a loan that you have never borrowed. How Payday Loan Scammers Work And What you can do to defend yourself.
This is how payday loan call fraud works.
When you apply for a loan online, you often do not visit the lender’s website. Instead, send a request to a lead generator, who will then sell your information to lenders who want to keep your business.
Even if you end up not taking out the payday loan that you applied for, there is a record of your application that contains a large amount of personal information as well as the amount you wanted to borrow. This plaque can easily be purchased by fraudsters.
These fraudsters then call him and try to collect a debt he never had. You claim to be a representative of a payday loan company. Sometimes they even say they are corporate lawyers because getting a call from a lawyer is always intimidating. You can also claim to belong to a government organization.
As soon as you are called, the threats begin. These scammers use all kinds of discreet tactics to intimidate you into paying. They will yell at you and curse you, threaten to sue you, seize your salary, or withdraw money from your account.
You agree to call all your friends and family, as well as your employer, to embarrass you. They could even threaten to arrest you! Basically, they will do anything to pressure you to pay them. It is blackmail of a person who did nothing at all.
Protect yourself against payday loan fraud.
Remember that these boys (or girls) have nothing with them. They are doing a big show to scare you. If you stay firm and don’t give up, there’s really nothing you can do to hurt yourself. Everything barks and without a bite.
First, you need to ask for written confirmation that you are indebted to the debt. Anyone who refuses to produce one is a fraud. And if they provide you with a written record, you can verify it with your own records. For example, you can request a free copy of your credit report and see if it was there as well.
Then ask the company for all the information. Get the name of the caller and the name of your business. Also, get your address and phone number. Fraudsters don’t want people to check them, so they don’t give you that information. A few quick surveys will show whether it is a real business or not. Legitimate debt collection agencies are happy to offer this.
And even if you have to collect all their information, you should not give them yours. This is a tip that applies to all phone scams. Do not share your personal information (account numbers, social security numbers) with anyone who calls you on the phone
Even if this fraudster cannot make you pay these false debts, he could steal your identity with the information he receives from you. Don’t be intimidated that they give them what they want. Stay still and push back.
Finally, report them. Submit a complaint to your Attorney General, the Financial Consumer Protection Agency (CFPB), and/or the Federal Trade Commission (FTC). The local police are unlikely to help much, as the fraudster is likely outside their jurisdiction, but these larger authorities could do something about it.