Don’t let financial struggles make you a victim of scams

When we need the most help, there are always those who will take advantage of our situation.

07:02 11 February 2014

When you experience financial difficulties, it is easier than at other times to fall victim to scams. You might be more apt to try deals with less than favourable aspects out of desperation. There are some legitimate payday lenders that are not scams, but that charge hefty fees and/or interest rates for loans. Scams are something entirely different that you should avoid at all costs. 

 

Here are some of the warning signs: 

 

• Guaranteed amounts—if you find companies guaranteeing a certain amount that is a large amount of money, at a great interest rate without even having to do a credit check, chances are that it is a scam. No reputable or sensible company will give large sums of money at great interest rates without verifying your ability to repay and your credit history. 

 

• Lender fees—any individual or company that promises a loan after they receive a lender fee up front will most likely take your fee and never give you the expected loan. Traditional lenders, and even payday lenders do not require you to pay money up front in order to get money first. 

 

• Email scam—these emails typically will request information from you such as your banking account information, identification number, or address in order to send or deposit funds. You will never see these funds; the individuals simply want to gain access to your accounts so they can steal your money, or your information, which can be sold to the highest bidder. 

 

• Brokerage fees—if a company requests a fee before lending money, or even before giving any type of approval it is a scam. Any type of non-refundable fee that is supposedly used to help you receive a loan may be questionable if it is not from a known entity such as a local bank.