What to look out for to weed out loan scams
Consumers have lost over $5 billion due to fraud in 2021 this year, which was which is a 70% increase over prior year. If you’re looking to stay out of the pitfalls of fraud, remain vigilant and aware. Before signing on the dotted line to sign any loan, be aware of these red flags to watch out for:
Beware of Lender Scam Lenders
A good way to steer clear of scam is to do a thorough analysis on the company. Most reputable lenders have a secure site that has a physical address. A lender might not be reliable when they don’t have an online presence or if their website isn’t secured (look for an icon that resembles an unlocked padlock on the right side of the URL on the browser). Along with their digital website address, be aware of their physical address. It should not be just a PO Box. A trustworthy lender will have an actual address to indicate their offices..
If you’re unsure regarding a particular lender, make sure that they’re licensed to conduct transactions in the state of your residence. It is the Nationwide Multistate Licensing System (NMLS) has an online consumer Access Database to aid consumers in verifying that financial services firms and other professionals are licensed to conduct business within their respective states. It also provides the Consumer Financial Protection Bureau also offers the list of states’ regulators of banks to provide a quick reference that can help you get in touch with the state’s regulator.
Be skeptical of guaranteed approval Offers
The most reputable lenders will only allow borrowers to borrow after thorough evaluation of the applicant’s finances and creditworthiness. While different lenders might use different criteria to determine how they decide who they loan money If a lender promises you a guarantee of approval before they even examine your credit report, take it as an indicator of danger. Every lender may be different but all have a list of criteria which must be met before they will approve the loan. Even if you are applying for a modest individual loan on the internet then you’ll probably need to submit certain minimum details like the social security numbers as well as proof of income and the photo ID. If you are applying for a bigger loan like a home mortgage the list of required documents will likely expand to include things like the bank statement, your tax return and other employment documents.
Pay-to-Play Loan Schemes
The majority of lenders charge fees with their loans, including charges for application that typically comprise the costs of credit checks as well as other fees for administrative services. However an honest lender will provide you with their fees prior to submitting a loan application. Certain lenders will also include costs into their total amount for the loan.
If a lender demands an advance payment prior to the normal process of applying beware. Scammers who promise of quick loans in exchange for a upfront fee probably do not have any genuine loans to provide. Fees for application are legal and required by numerous reliable lenders, don’t provide a guarantee of approval.
A further red flag is the lender’s attempt to add additional fees that were not previously disclosed before they will approve you for the loan. For mortgage loans, for instance, a trustworthy lender will list all fees, as well as the monthly payment and the interest rate in the form of a estimate of the loan prior to authorizing the loan.
The main point is that if the lender is concealing anything or isn’t giving you written information about your loan Be wary. Be aware of the situation and defend yourself from being among the many who have been victims of fraud.
If you have any questions about the Mariner Finance loan, call 863-328-5080 to speak an one of our loan agents.