Avoiding Loan Fraud
May 24, 2009 by admin · Leave a Comment
Avoiding loan fraud would be best accomplished by avoiding getting a loan. Don’t’ you wish it was that easy? We both know that taking out loans is not always part of your financial plans, but are often necessary. Sometimes the unappealing becomes the unavoidable. Every day misinformed consumers become victim to loan fraud and predatory lending. Most of these victims are seniors or first-time loan purchasers. If a loan becomes part of your plan, know how to protect your personal finances by avoiding loan fraud.
Shop around and investigate the lenders you are considering doing business with. They will be getting your money, so you need to make sure they’re reputable and will treat you right. If you hear anything that sounds like, “I can only offer you this rate right now…in five minutes….” or “We are your only shot at getting a loan like this”, its time to run in the opposite direction as fast as possible.
Don’t sign anything unless you’ve examined it carefully. Anything you put your signature to should contain exactly what you and the lender have discussed verbally. If there’s something you don’t understand, ask. The fees and interest rates should match what you’ve agreed to. If any of this information is off, you could be getting scammed. And if a lender tries to get you to lie about things on your application to get you more money, this is not a company you want to do business with.
If possible, try not to disclose that you need the money for anything urgent. If you sound desperate for the funds, a lender could try to take advantage. It will make you appear vulnerable and they may offer you something higher than what you’d normally get. Also don’t let the lender convince that you should get more money than you need. It may be tempting but you’ll pay the price in the long run. Finally, if it sounds suspicious or too good to be true it usually is. If things just don’t feel right, it’s better to walk away and be on the safe side. Avoiding loan fraud can be as simple as following your natural instincts
