How to Protect Yourself from Online Payday Loan No Credit Check Scams
In as much as there are legitimate online payday loan no credit check lenders out there, we also need to be well-aware of the fakes.
Falling a victim to these scams can be devastating and come with serious consequences on your finances.
These scammers tend to play on your emotional intelligence, especially when you are at your lowest in life. They approach you with mouth-watering offers and promises that you cannot resist.
Online payday loan scam artists often the target younger ones and elderlies. Basically, any one they can easily prey on are an important target to them.
In 2021, there were over 2.8 million cases of fraud received by the FTC. 34% of these cases involved consumers losing their money to some form of scam.
Roughly over 10,000 payday loan scam cases are reported yearly.
Payday loan scam artists often leverage on information stolen from legitimate direct lenders to extort people. This can be accounted to the massive adoption and rise in the payday lending industry.
Fraudsters could also come in the form of a debt collector to extort you. They could fake company names to sound like a law firm to collect loan payment from you illegitimately.
Online payday loan scam artists also rely on information they find about you online. This information is often gotten whenever you submit your information to a lead generator or online application form.
Most online platforms are in the business of buying and selling of user data.
Online payday loan Las Vegas scam artists leverage on this to get all the necessary information of you to prey on you.
Regardless, there are many ways to distinguish the real from the fake.
How to Protect Yourself from Online Payday Loan Scams in Las Vegas?
1. Research the Lender
Before taking out any online payday loan offer, first carry out a thorough research on the lender’s authenticity. Source for online reviews and testimonials about their platform to get a better understanding about them.
Word of mouth works best in situations like this.
2. Verify the Lender’s Website Security
Ensure that an online payday lender’s website is SSL certified before using it. You can do this by checking to see if there’s an “https://” at the beginning of their website URL.
SSL certified websites protect your personal identifiable information by encrypting it. With this, hackers and scam artists can not find a way around this information to prey on you.
3. Never Pay Upfront Fees
Fraudulent companies may also ask for prepaid gift cards from retailers or apps like Target and Google Play. They leverage this tactic to promise you lower interest rates on your loan offer.
For this, they may set up a fake bank deposit to your account and have it show as “pending”. They will claim that your funds will be cleared for deposit once they receive the gift card or upfront fees.
No legit direct payday loan online no credit check lender will require you to pay money before getting any loan. To avoid being scammed, avoid any lender that demands an upfront fee or payment before approving your loan request.
4. Be Cautious with Personal Information
Remember, these scammers have no way to access your information unless you give it to them.
5. Confirm their Contact Information
It’s also important to confirm the validity of the contact of a payday loan online no credit check lender.
Scam artists often send out mails using generic service providers like Gmail, Hotmail, or Yahoo. On the other hand, legitimate online payday lenders have mails associated with their company domain.
For instance, a scam artist’s mail will look something like this, “firstname.lastname@example.org”, while a legitimate lender’s mail will look like, “email@example.com”.
Also, it’s a best security practice never to open an email you don’t trust. Most scam emails come with phishing links that are programmed to steal sensitive information.
Scam artists could easily clone any legitimate lender’s website and use it to prey on vulnerable customers. Always check the URL of any loan provider you choose to work with and ensure it matches the mails they send you.
6. Read Thoroughly the Terms and Conditions of Your Payday Loan Online No Credit Check Offer
This is a common mistake made by most loan consumers. It is one that payday loan scam artists often use to prey on them.
Reputable online payday lenders are always transparent to borrowers about their loan terms and conditions. Avoid any lender that refuses to disclose all the loan terms and conditions before your loan approval.
7. Watch Out for Aggressive Tactics
Timing means every to these payday loan scam artists. Thus, always move at a smooth pace when dealing with any online payday lender.
A legitimate payday lender will never rush you into signing onto a loan offer. On the other hand, payday loan scam artists often use urgency and threats to manipulate you into getting one.
They may also claim of a limited time opportunity to get the loan offer.
8. Check the Lender’s Licensing
Online payday loan scam artists rarely have any recognizable license or permit backing their operations. Thus, any lender that claims to be licensed by the state to offer loan services but can not provide proof are most likely fake.
The Nevada Statute 604A.010 et seq. 2017 Chapter 274 regulates most payday lending activities in Las Vegas.
9. Avoid Unsolicited Offers
Be cautious of unsolicited lenders who constantly call or email you offering you payday loans. No legitimate payday loan provider pre-approves you for a loan offer without a formal application process.
10. Report Suspicious Loan Activities
Every state within the United States has laws and regulations guiding payday loan services and companies. Never hesitate to contact your state attorney whenever you get scammed or notice any suspicious loan activity by a provider.
Some law firms and attorneys have been known to work for free or pro bono for cases related to this.
You can also contact the following authorities for payday loan related scam cases: Federal Trade Commission (FTC), Consumer Financial Protection Bureau, State Attorney General, or your local law enforcement agencies.