Avoid Being Tricked By Fake Loan Scams
Each month hundreds of consumers fall for fake loan scams in their desperation to access more credit to try to solve their financial problems. How can you avoid being taken for a ride and losing money you cannot afford?
With many scams, there are some clear warning signs for those who know where to look. These may later seem very obvious to those who are scammed but it is much better to see the danger coming and avoid it altogether.
Many scammers send sms messages or emails that pretend they are from legitimate brands like the big banks. This makes it hard to know who you are dealing with. One way to check on any deal that is offered is to head into a local branch and see if they have a record of such a loan or deal being offered. It takes you a few minutes when you are out and about to avoid the heartache of being scammed.
Check the email address: Often times scammers will send an email which features the name of a well-known credit provider somewhere in the email address. For example, it may sayloans.Bankname @ somewierdemailaddress.ru
Their having the banks or credit providers name in the middle of the email address tries to trick you into thinking this email is from the bank itself. Credit providers normally have their own websites and so their name is at the end of the email address. For example, firstname.lastname@example.org. Local banks and credit providers will have a .co.za website address 99% of the time. So watch out for weird endings to email addresses!
The very ancient idea of blacklisting has long gone away and everyone who can afford credit can now access credit even if they have had problems with repaying debt before. Blacklisting does not exist!
If you see an advert using this phrase anywhere you know you are probably dealing with a scam.
‘Blacklisting does not exist!’
No Credit Checks
It is illegal for a credit provider to give anyone credit without doing what is called an affordability assessment. This means they have to check, by law, whether a consumer can actually pay back the money they are lending. If you see an SMS or email or sign somewhere that says these words then it is a scam!
‘they have to check, by law, whether a consumer can actually pay back the money they are lending’
You Have to Pay them NOW to get Money LATER
This is the cornerstone of all fake loan scams. For one reason or another, they ask you to pay them in advance to make money available to you soon. The National Credit Act & Regulations as monitored by the National Credit Regulator does not allow credit providers to do this.
If the company or person you are dealing with asks you for money (even a small amount) now to get you your loan at some future point then IT IS A SCAM!!!
As soon as you hear this or they ask this be very careful. Stall them and immediately report this scam to the NCR and or the police. Share the details with the authorities and do not deal with the scammers any more.
When looking for credit, shop around and compare. Take your time. Don’t make any rushed decisions or deal with anyone who tries to pressurise you to commit to taking the credit right away.
Is More Debt Even the Best Option Anyway?
If you have financial problems then you should know that simply getting another loan or more credit is only going to stall the problem for a few days and will ultimately probably make your situation worse. Please avoid taking on more debt when your problem is…debt. Think about it. Doing so makes no sense. It is like saying that you feel overweight so you are going to crush a bucket of fried chicken to help you deal with the situation.
If you are experiencing difficult financial times why not speak to your local Debt Counsellor for some free advice on how to turn your situation around. They may have budgeting advice for you or may suggest the more serious and helpful step of entering debt review if your situation is very complicated and difficult.