Michael E Weintraub Esq with customers increasingly facing debt problems, it is easy for fraudsters. To take advantage of them by offering lucrative terms. On debt consolidation, personal loans, medical debt, student loans, credit card debt, and more. While determining whether a lender is legitimate calls for thorough research. Some common signs should immediately put you on the alert, cautions Michael E Weintraub esq.
The Lender Does Not Display Any Interest in Your Credit History
While every lender has its own benchmark of the risk it will assume, they will base their offer regarding the maximum amount of loan. And the rate of interest on your credit history. Fraudulent lenders, on the other hand, don’t bother about credit checks. Because they are looking out for high-risk borrowers whom they can scam with stiff late payment fees, penalties, and a very high rate of interest.
Michael E Weintraub Esq Lender Not Registered in Your State
Lenders are required to be registered in the state where they operate in compliance. With the rules of the Federal Trade Commission (FTC). Checking the company’s website and then verifying the facts with the office of the attorney general, or Department of Financial Regulation, or Department of Banking is recommended to establish whether the company’s operations in your state are legal.
Loan Company Demanding Borrower’s Debit Card Is a Big Alert, Observes Michael E Weintraub esq.
Some fraudulent lenders insist that the borrowers provide them with a debit card. On the pretext that they need it to pay for their fees, collateral, insurance, etc. If a lender asks for a debit card, you can be sure it is a fraudulent company. Since you will never be able to trace the money, and neither will you be able to report it as stolen, cautions Michael E Weintraub esq. Even though legitimate lenders do charge fees to process your loan. They will always disclose the amounts upfront and arrange to deduct it from the loan.
Michael E Weintraub Esq Fee Structure Is Not Transparent
It is typical for scam lenders to avoid disclosing their fees. They try to assess how savvy the borrowers are and then keep springing hidden fees. On to them and pressuring them to pay up. It is illegal for companies to demand any fees before a loan has been approved. Walk away from companies who are not transparent about their fees or demand payment upfront to process the application.
Michael E Weintraub Esq Demands You to Take Immediate Action
A surefire sign of unethical intentions is when a company keeps on insisting that you should apply and complete the loan process. Immediately because otherwise, the offer will expire. Even though lenders operate in a competitive market, this kind of insistence should act as a red flag. Because it is clear that the company does want to give you the time to think rationally. Never get involved with a lender who seems to be in a rush.
It is important not to appear desperate to take a loan since this is a sign for scam lenders to lure you with lucrative offers or promise immediate loan disbursement. If anything, however remote, look suspicious, take the time to verify the facts, and proceed only if you are confident that you are dealing with a legitimate lender.