Auto Financing Fraud
How the scam works:
(with video below) You’re about to buy a vehicle and are in need of a loan. Doing your research for decent auto loans and car financing options, you see a bunch of ads promising you all that. They’re everywhere. Even if you have or don’t have bad credit, the auto financing options are endless, which leaves a lot of room of questionable practices to get clients like you in the door.
There are two variations of the scam in the finance or refinance auto loan sector: the Fast Auto Loans Up-front Fees technique and the Guaranteed Loan strategy.
Watch the video below to see in action the Fast Auto Loan Up-front Fee scam exposed in the news.
You might become of victim of this scam by falling for tag lines such as “No credit check car loans” or “Best autorefinance option right here!”. How does it work? The Fast Auto Loans Up-front fees scam asks the purchaser to deposit fees up front to obtain the loan. This way the buyer is promised a fast loan, with no pain. Requesting any up-front funding – with the exception of a modest application fee – is never something you should have to pay to obtain a loan, whether online or in a bank.
The Guaranteed Loan scam makes people with bad credit believe that they are the only lender that will give them a chance. High-pressure tactics, a lot of “guarantees” thrown around, and additional advantages are the hooks that catch the victims into the scammers’ net. Of course, their interest rates are astronomical and they usually tack on all kinds of extra hidden fees for use of their services.
How to avoid:
First, make sure you are on a secure site, as referenced by the https: address. Do your homework and compare shop loan sites before making your decision. Never make any loan payments until you are sure your loan has been approved and you have verified the bank.
If you are looking for online sources for a car loan use only reputable companies such as Web2Carz. According to online reviews they are one of the best agency out there, with services in the United States and Canada. You can get a quote or find out more about loans and financing options on their website HERE.