Loan Approval Scam: How it Works
(with video below)
Knowing how to get prequalified for a mortgage could save you a lot of grief. However, beware of the Loans For People With Bad Credit or Home Equity Loan Approval scam happening these days. It is one of the typical loan text financial scams happening out there. Let’s take look.
You might be looking for loans on the internet to try to find better interest rates than what the bank is offering. Whether you’re looking for the best payday loans, merchant cash advance, student loans, business cash advance, or secured loans for people with bad credit, you could easily become a victim of a fraudulent maneuver. How do the common loan scams work?
Watch the video below to see in action the Approved For A Loan Scam exposed:
Imagine this scenario: You’re looking to secure a substantial loan and are not sure about the best way to do it. Researching online you see an ad promising a guaranteed loan if you use their business. Attractive tag lines such as ‘Short Term Cash Loans‘, ‘Need Cash Now?’, ‘Payday Loans No Credit Checks‘, or ‘Same Day Payday Loans’ do the trick and you are sold.
You call the company and a nice agent on the line gives you a full description of the loan. Again, this could be pulled on you regardless if you are interested in a payday loan consolidation or unsecured loans.
You tell him you’re looking for $9,000 and he says that won’t be a problem. A few days later, you get a package from the company to confirm the deal. It has a fancy letterhead and everything looks legitimate.
You go through the process of crossing the “t”s and dotting the “i”s and send it back to them, along with a $500 fee to secure the loan. They tell you the money will be in your account within the next two business days. When the money doesn’t come in, you make another call to the company to check on the status–nobody answers, or if they do, it’ll be someone who has no idea what you’re talking about.
Alternatively, they might tell you there was an issue with the application and more money is needed, or they offer you a Premium Insurance Policy, worth around $1,000. They now tell you that you need the policy to guarantee the loan. Basically, you are being asked to keep pumping money into something you shouldn’t have spent a dime on in the first place.
Loan Approval Scam: How to Avoid
Go to the bank for loan applications if possible. You may see some tempting offers, but those that seem too good to be true usually are. There are some more trustworthy sites where you can apply online but be very wary of any place you haven’t heard of. If you want to borrow money from payday loan agencies, use only reputable companies.
Last but not least, beware of SBA loan scams.
Loan Approval Scam: How to Report
Make your family and friends aware of the Loan Approval Scam by sharing it on social media using the buttons provided. You can also officially report the scammers to the Federal Trade Commission using the link below:
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