If you are not careful, you can lose thousands worth of your life savings in a heartbeat. Reports by leading fake loan tracking sites show how victims are cheated into making fictitious loan deposits. As of 2018 data, there was a 151 percent spike in people registering fake claims.
As a borrower, one should take all the necessary precautions that will safeguard their financial situation from loan cons. The first step in picking out a licensed lender from other fictitious crooks is through observation. Here are some signs used that point out how honest the lender is. A check by the Singapore Ministry of law details rules and regulations that must be observed by all money lenders.
Methods Adopted by Lenders to Lure Unsuspecting Borrowers
1. High Processing Charges
The fake lenders charge their clients high processing fees before giving out the loan. They will insist on pre-payment before any loan transfer is done. Such an amount easily runs into thousands of dollars. To avoid potential cons, borrowers must comply with demand involving large upfront cash payments. If you experience this, withdraw your loan application and raise public awareness on the potential scammer.
2. Fictitious Adverts
Another way of pointing out fake lending sites is by checking out their advertising method. In Singapore, the legal requirements center adverts to the following channels; consumer and business directories, websites, and adverts on the exterior of money lenders premises.
Loan scammers rely on SMS or social media platforms to go about advertising their loans. Borrowers must keep away from any of such adverts on SMS or social media, if not they might as well block such contacts. The contacts of the scammers can also be shared with the authorities, so others are safeguarded from falling prey.
3. Auto Approvals
Loan scammers grant their borrowers approvals on their applications. This is a red flag for borrowers as reputable lenders go through certain credit histories requiring them to ask several questions before getting final approval on their loans.
4. Immediate Response
The fake lenders demand urgent responses from all applicants. Borrowers are deceived that a failure to apply for such loans immediately will result in a loss the opportunity altogether. This is their ploy to get the borrower to give the loan less scrutiny and make a rash decision.
5. No Physical Office
Loan scammers and con artists demand quick responses from all applicants. They will deceive all borrowers into making quick applications for their loans. That way they reduce their risk of being exposed and arrested. It is really difficult to arrest anyone who operates without a physical address. If you are concerned about the lender request to visit their physical location and see whether they exist or not. If there is no office premise, there is a high chance they are scammers. All licensed money lenders operate with an office number.
6. Loan Contracts
Scammers do not easily give away loan contracts as they do not want to hand out a document laced with evidence. If you ask for a contract and are told there is none, you must be worried there is a possibility it is a scam. Any hesitation in explaining the contract in full detail is also a bad sign.
