To keep our members aware of the scams, we wanted to continue sharing key signs to look out for when coming across personal loan scams.
If you haven’t read the first 5 signs to look out for, you can check them out here.
Here are the other five scams in this blog.
6. You’re Required to Pay Fees Upfront
If a lender asks for payment of fees before the application process or immediately after approval, it is most likely a scam. Loan origination fees are typically paid at closing.
7. The Lender Asks for a Prepaid Credit Card as Payment
If a lender asks for loan repayment in the form of gift cards or prepaid credit cards, this is a major sign that it’s a scam. Usually, lenders accept loan payments in the form of online payments, checks, and other traditional forms of payment and would never request or accept a prepaid credit card as payment.
8. The Lender Isn’t Registered with the State
Lenders are required by the Federal Trade Commission (FTC) to register with the attorney general in every state the lender does business.
Before you give a lender your Social Security number or other personal information, visit your state’s relevant website to confirm the institution is registered. If you’re not sure who to contact, check with the National Association of Attorneys General.
9. The Lender Doesn’t Have a Secure Website
Because banks handle large volumes of personal information like birthdays, Social Security numbers and login credentials, their websites have to be secured with a Secure Sockets Layer (SSL) certificate. The SSL facilitates an encrypted connection between your computer and the lender’s website.
When shopping for a personal loan, confirm the lender’s website is secure by checking for the “https” prefix on the web address instead of “http.” If the website is not secure, it may be a scam. Research the lender’s legitimacy further before providing any information.
10. You Can’t Find a Physical Address
Reputable lenders have physical addresses where they can conduct business and receive mail. A physical address not only enables customers to visit the lender in person, but it also creates accountability so the business can be contacted in the case of legal action or other enforcement measures.
If there is a lack of a physical address, that should deter you from trying to get a personal loan from a specific business.
Have you seen more signs that weren’t mentioned? Let us know!
As we work together to get through these ever-changing times, let us know how we can help! We have personal loan options available to help you with your needs. Please give us a call at 800-835-3400 to speak with one of our Member Advisors, or visit us online at caminofcu.org for more information. We are here to help you on your financial journey.