Share this Mister Wong Digg Del.icio.us Slashdot Furl Yahoo Technorati Newsvine Googlize this Blinklist Facebook Wikio Hear this text Print E-mail Tags payday loans short-term loans scams payday loan

Many people rely on payday loans when they are short of cash or are suddenly faced with unexpected expenses. These short-term loans usually have a duration of 10 to 14 days and are often due on payday. Unfortunately, scammers pretending to be legitimate payday lending companies have emerged. The only purpose of these people is to take advantage of the worried consumer who needs some cash because of an emergency.

Check that the company is licensed to operate in your area.

Provincial governments have established regulations that require payday loan companies to be licensed. Because only good companies can get a license, a good way to avoid being scammed is to make sure that the company is licensed to offer loans in your area.

Check the privacy policy of the online payday loan provider.

Before filling up an online application, make sure that you have checked its privacy policy. Some sites are just there to obtain personal and confidential information that they may later use for identity theft or for stealing from the victim's accounts.

Avoid companies offering payday loans using spam email.

Sometimes, you may suddenly receive an offer in your email inbox and the interest rates may be very low. A good policy for such offers is simply to ignore them. There is a very good chance that they are scams.

Avoid companies that require you to pay an advance fee even before they release the loan.

Some scammers may try to get your money by asking for an advance fee. When you encounter this kind of company, it is advisable to find another payday loan company no matter what the reason that is offered for the advance fee.

Add comment

Name (required)

E-mail (required)

Notify me of follow-up comments

Refresh

Send

Cancel