Online Cash Advance
For every legitimate business entity, there are thousands of scams. Online cash advance loans are subject to scams just any other business.
The Internet, as convenient as it is, makes it easy to perpetrate a scam. When working on the Internet, the business becomes a faceless entity. Even if there is a picture of the boss on the web site, who knows if that is a picture of the boss or just a picture to ensure confidence. Online cash advance scams and applicants have to be very careful who they do business with.
Online cash advance scams usually involve collecting personal information for purposes other than approving a loan. The information is sold to identify thieves who in turn use the information to take out credit cards in another person’s name or help themselves to the contents of someone’s bank account.
Consumers who opt for online cash advance loans need to be vigilant in their research of a company that offers online cash advance loans. One of the more popular scams is the lender who opens a credit card in the applicants name then authorizes a cash advance in the guise of a loan. The borrower thinks they are making payments towards a loan, but are really paying off a credit card. By the time the applicant realizes what has happened, they are deep in debt. It is not easy to get out of such a mess and it will cost the applicant in the long run, especially if they have to employ the assistance of an attorney to help them sort out the mess.
Be very wary of an online cash advance lender who claims an extraordinarily high rate of approvals. It is true that a lot of lenders do have a high rate of approval, but the online scammer uses that “high approval rate” to attract customers to apply. The true scammer will never approve an online cash advance, but use the application to get the applicants personal information such as social security number and credit card and bank information. That information is used to allow others to get a driver’s license, credit card, and establish an appearance of having a legal identity.
A few signs that may indicate the online cash advance lender is less that reputable are lack of contact information on the web site, lack of the terms and conditions easily found on the web site and no mention of the finance charges or the payback time frame. Someone in a hurry to get such a loan will probably not take the time to check out those items. If the lender is a scam artist, the applicant will be caught up a mess of trouble.
Also be wary if the lender asks for information not on the application. Question the why’s of needing the information. If the answer sounds fishy, and it probably will, move onto the next lender. A lender who pressures you to take out more of a loan than you need is not a trustworthy lender and is probably up to something underhanded.