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FBI – Twist in Payday Loan Phone Scams Affects Emergency Services #car #loans #4 #u


#loans by phone
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Twist in Payday Loan Phone Scams Affects Emergency Services

This month’s IC3 report includes payday loan phone scam techniques that affect emergency services; a new twist to an online tech support scam; the continuing problem of the Blackhole exploit kit; a list of the most popular passwords of 2012; the sale of an exploit for a security hole in Java software by cyber criminals; fake order confirmation e-mails from American Airlines that contain malware; and a 419 scam that invokes the IC3 for “legitimacy.”

Jan 07, 2013 05:00 PM

Twist in Payday Loan Phone Scams Affects Emergency Services

For at least the past three years, there have been reports of victims being contacted relentlessly by phone because they are supposedly delinquent on a payday loan. Perpetrators of this scam have used various coercion techniques including abusive language and threats of bodily harm or arrest to get victims to send money. And according to the latest report from the Internet Crime Complaint Center (IC3), scammers have begun to launch Telephony Denial of Service (TDoS) attacks against victims employers some of which have been emergency service agencies. These TDoS attacks have tied up the emergency services phone lines, preventing them from receiving and responding to legitimate calls for help.

Other items in this month s IC3 report include a new twist to an online tech support scam; the continuing problem of the widely used and criminally successful Blackhole exploit kit; a list of the most popular passwords of 2012 (be sure to change yours); the sale of an exploit for a previously undocumented security hole in Java software by cyber criminals; fake order confirmation e-mails from American Airlines that contain malware; and a 419 scam that invokes the IC3 for legitimacy.


How to Avoid Bad Credit Loan Scams #loan #sharks


#credit loan
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Avoid a Bad Credit Loan Scam

By LaToya Irby. Credit/Debt Management Expert

Welcome to About.com s Credit/Debt Management site, led by your guide, LaToya Irby. LaToya has been the credit and debt management guide since 2007. Read more

One of the consequences of having bad credit is that it s hard to borrow money. Lenders perceive you as a risky borrower who s likely to default on loan terms. so many will deny your application. Because of this, borrowers with bad credit are often targeted by companies who offer bad credit loans. Unfortunately, these loans are often scams intended to trick you into giving up some funds.

The may be as low as $50 or up to several thousands dollars depending on the amount you re borrowing. The lender might call this a loan origination fee. loan insurance fee, or even collateral for the loan. You send the money and wait for your bad credit loan, but you never receive it. Unfortunately, by the time you realize what s going on, your money s long gone and the lender is nowhere to be found

It s against the law for a company to promise to loan you money in exchange for a fee – these are called advance fee loans . Not only do legitimate lenders not require a payment to let you borrow a bad credit loan. it doesn t make good financial sense to pay money to borrow money.

Signs of a Bad Credit Loan Scam

The most obvious sign a bad credit loan is a scam is a request for upfront payment. (Note that with a mortgage or car loan there will be a down payment on a mortgage or car loan or closing costs.)

Advance-fee and other bad credit loan scams typically guarantee you ll receive loan, even before they ve checked your credit. They promise to give you a bad credit loan regardless of your credit history. income, or a past bankruptcy. But, no legitimate lender will give you a loan without some assurance that you re going to pay the loan back.

Continue Reading Below

One sign that you re dealing with a scammer is that the company asks/requires you to send upfront payment some ways besides U.S. mail and a personal check. Because there are strict mail fraud laws in the United States, scammers don t usually receive payments through the mail. Instead, they often request that you wire the payment to them. Scammers are increasingly asking victims to send money via Green Money MoneyPak, which is another method that s hard to trace once the funds have been sent.

Be wary of lenders in foreign countries like Canada or the Caribbean. These are the two most common places that bad credit loan scams seem to originate. Just because the loan comes from somewhere other than those two places doesn t mean it s legitimate. Carefully compare the loan to the other criteria to verify the bad credit loan.

Beware of companies requesting your social security number, bank account number, or credit card number without providing you any written documentation on the loan. Avoid giving out sensitive information over the phone unless you initiated the call to a business you know and trust.

What If You ve Been Scammed

If you ve been the victim of a bad credit loan scam, contact your local law enforcement as soon as possible. You should also notify your state Attorney General, the FBI if the company was from another state or country, and the Federal Trade Commission. It s also a good idea to let the Better Business Bureau know about the scam to alert other consumers about the trap.


How to Avoid Bad Credit Loan Scams #payday #loans #for #people #on #benefits


#credit loan
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Avoid a Bad Credit Loan Scam

By LaToya Irby. Credit/Debt Management Expert

Welcome to About.com s Credit/Debt Management site, led by your guide, LaToya Irby. LaToya has been the credit and debt management guide since 2007. Read more

One of the consequences of having bad credit is that it s hard to borrow money. Lenders perceive you as a risky borrower who s likely to default on loan terms. so many will deny your application. Because of this, borrowers with bad credit are often targeted by companies who offer bad credit loans. Unfortunately, these loans are often scams intended to trick you into giving up some funds.

The may be as low as $50 or up to several thousands dollars depending on the amount you re borrowing. The lender might call this a loan origination fee. loan insurance fee, or even collateral for the loan. You send the money and wait for your bad credit loan, but you never receive it. Unfortunately, by the time you realize what s going on, your money s long gone and the lender is nowhere to be found

It s against the law for a company to promise to loan you money in exchange for a fee – these are called advance fee loans . Not only do legitimate lenders not require a payment to let you borrow a bad credit loan. it doesn t make good financial sense to pay money to borrow money.

Signs of a Bad Credit Loan Scam

The most obvious sign a bad credit loan is a scam is a request for upfront payment. (Note that with a mortgage or car loan there will be a down payment on a mortgage or car loan or closing costs.)

Advance-fee and other bad credit loan scams typically guarantee you ll receive loan, even before they ve checked your credit. They promise to give you a bad credit loan regardless of your credit history. income, or a past bankruptcy. But, no legitimate lender will give you a loan without some assurance that you re going to pay the loan back.

Continue Reading Below

One sign that you re dealing with a scammer is that the company asks/requires you to send upfront payment some ways besides U.S. mail and a personal check. Because there are strict mail fraud laws in the United States, scammers don t usually receive payments through the mail. Instead, they often request that you wire the payment to them. Scammers are increasingly asking victims to send money via Green Money MoneyPak, which is another method that s hard to trace once the funds have been sent.

Be wary of lenders in foreign countries like Canada or the Caribbean. These are the two most common places that bad credit loan scams seem to originate. Just because the loan comes from somewhere other than those two places doesn t mean it s legitimate. Carefully compare the loan to the other criteria to verify the bad credit loan.

Beware of companies requesting your social security number, bank account number, or credit card number without providing you any written documentation on the loan. Avoid giving out sensitive information over the phone unless you initiated the call to a business you know and trust.

What If You ve Been Scammed

If you ve been the victim of a bad credit loan scam, contact your local law enforcement as soon as possible. You should also notify your state Attorney General, the FBI if the company was from another state or country, and the Federal Trade Commission. It s also a good idea to let the Better Business Bureau know about the scam to alert other consumers about the trap.


AG – Advance-Fee Loan Scams #car #loan #interest #rate


#pay advance loans
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Advance-Fee Loan Scams

ATTORNEY GENERAL

The Attorney General provides Consumer Alerts to inform the public of unfair, misleading, or deceptive business practices, and to provide information and guidance on other issues of concern. Consumer Alerts are not legal advice, legal authority, or a binding legal opinion from the Department of Attorney General.

ADVANCE-FEE LOAN SCAMS

Advance-fee loan or credit card scams are often targeted at people with bad credit. The scam may start as a legitimate appearing website offering online lending services or an ad in the newspaper: “Bad credit no problem — loans available by applying online or calling 1-###-###-####.” The consumer is soon told, “You are qualified, but you must send a fee to process your application/pay a security deposit/pay for insurance.” The victim pays the money, and no loan or credit card is issued. If you re asked to pay a fee for the promise of a loan or credit card, especially to a “lender” who isn t interested in your credit history, you can count on the fact that you re dealing with a scam artist.

RECOGNIZING THE SCAM

The websites and ads offer easy access to loans, regardless of credit history. The advance-fee scammer may use a false business name and address, often with toll-free 800, 866, or 877 phone number that is difficult to trace or rings into Canada. Sometimes the scammer s website or ad will even use a legitimate company s name or physical office address. A fancy website or an ad in a recognized media outlet does not guarantee that the company is trustworthy.

Consumers responding to such websites or ads are taken through a phony application process and later may even receive fake loan approval documents. In order to receive the approved loan, applicants are directed to pay money up-front, under the guise of an application fee, a security deposit, for credit insurance, or some other fee. Often, the applicant is directed to send the payment via wired money transfer, payable to an individual rather than a business.

Consumers filing complaints with the Michigan Attorney General s Consumer Protection Division have been directed to wire payments to Canadian addresses. After sending payment, the loan is never received, and refund attempts are futile.

Making matters worse, some scammers have used the information collected from advance-fee loan victims to commit identity theft.

PROTECT YOURSELF: TIPS TO AVOID ADVANCE-FEE LOAN SCAMS

Don t pay for the promise of a loan . While legitimate lenders may charge you a small amount to process your application and cover the cost of checking your credit, the fees generally are taken from the amount borrowed. Legitimate offers of credit do not require an up-front payment.

Ignore any website offer, newspaper ad, or caller, that guarantees a loan in exchange for an up-front fee . Legitimate lenders never guarantee that you will receive a loan before you apply or before they have checked out your credit status or contacted your references, especially if you have bad credit or no credit record. Be wary of anyone who tells you that they can provide loan approval by reviewing information you give over the phone without a credit check or who says you qualify for a loan at a competitive rate regardless of your credit history.

Thoroughly investigate loan offers from unfamiliar companies. Ask for the company s physical location. Verify if the location actually exists by checking with the U.S. Postal Department, entering the address online at https://tools.usps.com/go/ZipLookupAction_input. Check the company s number and physical location in the phone book or from directory assistance, and call it to make sure that you are dealing with the company you think you are. Check the lender out with the Better Business Bureau. Check out questionable ads and Web site offers by calling Project Phonebusters in Canada toll-free at 1-888-495-8501, particularly if any payment or other communication to a Canadian location is requested. The Attorney General s office also may have helpful information.

Don t wire money or send money orders for a loan . You have little recourse if there s a problem with a wire transaction. Legitimate lenders don t pressure you to wire funds. Refuse to do business with anyone who encourages you to send money or act immediately.

Don t make payment to an individual for a loan . No legitimate lending institution would make such a request.

Steer clear of advance-fee offers that promise a credit card with a pre-approved limit and low interest rates for a fee . To pay the fee, you will be asked to give your bank account information and authorize an electronic draft to pay the fee. In most cases, the credit card never materializes, and the consumer s bank account is quickly drained.

FILE A COMPLAINT

Consumers who fall victim to an advance payment loan or credit card scam should contact the media source that advertised the bogus offer. Responsible advertisers will terminate these ads and contact law enforcement. Since most advance-fee loan scams involve a victim in one state and a scam artist in another, reporting the problem to the Federal Trade Commission is wise: online at www.ftc.gov or by phone, toll-free 877-FTC-HELP (1-877-382-4357).

Consumers may also contact the Attorney General s Consumer Protection Division at:

Consumer Protection Division


Lawmakers crack down on student loan repayment scams. #cheapest #payday #loans


#student loan consolidation
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Lawmakers crack down on student loan repayment scams

WASHINGTON, Nov. 13 (UPI) — Against the backdrop of a rising tide of student loan debt and growing concerns of a nationwide crisis, state and federal lawmakers have been cracking down on companies using illegal tactics to go after desperate student loan borrowers.

Scams that promise loan consolidation or debt reduction to student borrowers at a fee have been on the rise, much like mortgage scams that prey on defaulting homeowners, analysts said. In the past few months alone, 10 student loan debt-relief companies have been targeted by government lawyers across the country, many of the companies facing legal action for alleged fraud and violations of consumer protection laws

“These scams are proof that the rate of student loan debt in this country has skyrocketed, and it has already destabilized the financial security of millions of people across the country,” Illinois Attorney General Lisa Madigan said earlier this year in suing five companies that promised debt reduction or elimination. “When people cannot make their loan payments, they don’t get to build the future that they dreamed about when they went to college. We cannot allow these scams to continue.”

About 43 million college students have about $1.2 trillion in outstanding student loans. As a growing number of people struggle to repay their student loans, many questionable companies have been offering help at a price.

About a year ago, the Consumer Financial Protection Bureau issued a warning to borrowers eager to dump their student debt, saying the companies “prey on distressed borrowers who run into trouble and struggle to figure out what comes next.”

Today, the situation has not improved. The following is a sample of legal actions taken against student loan debt relief companies:

College Education Services. based in Tampa, Fla.

The state of Florida, with the CFPB, shut down the company after allegations it violated federal telemarketing laws. The company never admitted or denied guilt, but agreed to cease operations and pay $50,000 in fines.

Federal Student Loan Alliance. based in Tustin, Calif.

In a lawsuit filed in May, the Illinois Attorney General alleged the company violated the state’s consumer fraud and debt settlement laws by charging thousands in up-front fees and falsely advertising they can stop wage garnishments, and prevent and remove tax liens resulting from defaulting on student loans. The attorney general, at the same time, filed lawsuits against four other companies accused of scamming student loan borrowers — Consumer Financial Resources of Texas, Interactiv Education of Florida, Nationwide Student Aid of Illinois and Student Consulting Group of Georgia.

Student Loan Processing. based in Dallas

In August, a Washington state judge found the company violated consumer protection laws more than 2,700 times by charging up-front fees at least 10 times the legal limit and collecting excessive monthly fees. In early November, the company was ordered to pay a $418,000 judgement, which includes $144,896 in borrower’s fees and $124,000 in court costs.

“Students graduate from Washington universities with an average of nearly $25,000 in debt,” Washington state Attorney General Bob Ferguson said. “This firm preyed on students who sought their help. I will not tolerate the financial abuse of already overburdened Washington students. I’m pleased this agreement offers a measure of justice for the victims.”


Fake payday loan scams target you #stafford #loans


#payday loan today
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Fake payday loan scams target you

Comstock, Getty Images

Scammers have tried all sorts of ways to get Bonnie Messler to pay for some fake payday loan.

Scammers have tried all sorts of ways to get Bonnie Messler to pay for some fake payday loan. less

Scammers have tried all sorts of ways to get Bonnie Messler to pay for some fake payday loan.

They called her brother, her ex-husband and his family. They telephoned her sister too. “She doesn’t even have my same name,” Messler said. “It just goes down the list.”

The Spotswood resident knew it was scam. She has never has taken out a payday loan, a short-term loan that promises quick cash along with exorbitant interest rates. But the scam calls keep coming. “It creates a lot of stress with people when they just constantly ring the telephone,” Messler said.

It’s called a phantom debt scam in which fraudsters call you up and claim you owe money on some bogus loan. The calls can be threatening “You are going to pay today or else,” Messler said, recounting what she heard people yelling in the background of one call. “We are going to throw you in jail.”


Advance Fee Loan Scams #car #loan #estimator


#unsecured loan company
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Advance Fee Loan Scams

Advance fee loan fraud takes advantage of the most vulnerable members of our society. These leeches often promise large unsecured loans to people who are unable to have a loan approved through traditional financial institutions, or take advantage of trusting souls with little financial experience. Armed with a smooth-as-silk sales routine and a complete lack of conscience, these scam artists often steal amounts that range from hundreds to thousands of dollars from unsuspecting consumers. Adding insult to injury, these losers often gather enough personal information from their victims to make them candidates for identity theft. Don’t become a victim! Please review and share the tips below.

Social Media Scam Alert

Be very cautious of loan solicitations on social media outlets. We are finding that legitimate company names are being used on phony Facebook accounts to draw in consumers. Make certain that you are dealing with the right company before you submit your personal information through those pages. Any personal information you submit to the scammers can be used for identity theft — even if you never send them any money. So, if you see a phony page on Facebook, or encounter spam or scams, report it to them!

Loan fraud warning signs:

  1. Be especially wary of unsolicited calls, e-mails or letters offering you a loan.
  2. Calls about a delinquent debt from unknown numbers, claiming to represent a collection agency or cash advance company (especially if you know you have no such delinquency).
  3. Requests for money to be sent in advance to cover processing , application , insurance , or the first month’s payment are a red flag of loan scams. Legitimate lenders NEVER ask for these things to be paid before a loan is disbursed.
  4. Once you fall for a loan scam, the greedy thieves may ask for even more money by telling that the original amount was erroneous, insufficient upon a second look at your credit, or that you will need to send payment for a second company to complete the loan process.
  5. Requests that you wire or send money, as soon as possible to a large U.S. city or to another country, such as Canada, England, or Nigeria, by Western Union, Moneygram, or similar means.
  6. Do not respond to loan solicitations in classified ads. Lenders do not post classifieds!
  7. Do not respond to solicitations by persons using free email accounts.
  8. Beware of offers that you encounter on social media (Facebook, Twitter, etc). Ensure that you land directly on the real organization’s webpage — not an imposter’s (for example, if the link tells you that it’s Capital One then your final destination after the click should be the Capital One website).

Four quick tips to avoid scams:

  1. Know the warning signs listed above
  2. Watch the video above about wiring scams.
  3. Check a website’s reputation using sources such as ripoffreport.com .
  4. Read more about internet fraud from the FBI

Have you have been scammed? Do the following:

  1. Report it to the Federal Trade Commission
  2. Also, report it to the Internet Crime Complaint Center
  3. Contact your local police (but don’t automatically assume the company name and address on your documents are legitimate. Remember, the scammers use fake addresses, those of REAL companies, or random residential addresses far away, in order to hide their operation)
  4. File fraud alerts with each of the three credit bureaus. This is necessary because the scammers typically obtain your sensitive information, such as your Social Security Number and information on your driver’s license. They can use this to obtain credit in your name. Visit TransUnion.com. Experian.com. and Equifax.com to begin this process..

How Advance Fee Loan Scam Artists Find Their Victims

You may be on their list. If you have applied for loans lately, you can be assured that your need for financial assistance has been made known to others besides the company to which you have applied. Often, such consumer information is sold by the credit reporting agencies, passing into hands far and wide. This practice makes it easy for unscrupulous companies to find potential victims for scams like advance fee loans. Be wary of unsolicited offers promising guaranteed loan approval made by mail, phone, or email, especially if personal information is requested. Never give out any personal information, such as your social security or bank account numbers, unless it is to a trusted company with which you have initiated contact.

In other cases, the consumer may come across an advertisement that offers loans, often assuring the reader that poor credit or no credit is not a problem. Commonly appearing in classified sections of newspapers or posted on the Internet, these ads are often placed in very reputable publications or on respected web sites in an attempt to lend credibility to their claims. Others have used the names and logos of well-established financial institutions, counterfeiting their ads but inserting their own contact information, leading the consumer to believe they have placed a call to a legitimate lender.

The Typical Advance Fee Loan Scheme

There are many variations of personal loan scams, but the basic steps remain the same in most of these schemes. First, the consumer is assured that they have qualified for an unsecured loan, usually for a large sum of money. Often, these consumers will be sent authentic looking documents and loan contracts to convince them that this is indeed a legitimate offer. Many times, these documents are embossed with fraudulent logos and names stolen from reputable lenders, helping to convince the consumer that this company can be trusted.

Correspondence from the scammers, including calls, emails, contracts, and letterhead, may seem very professional. This is meant to smooth away any suspicions the target of this scam may be feeling, part of the manipulation these predators practice so skillfully.

Next, the consumer is told that due to the amount of the loan or their questionable credit rating, a deposit is needed. This up front payment is often explained away as a down payment, insurance premium, or processing fee and can range from several hundred dollars to several thousand. Generally, the scammers will then instruct the consumer to send the deposit through Western Union or Moneygram, and fax applications complete with personal and financial information to them, with the assurance that they will receive their loan very quickly after these steps are taken. Of course, the consumer receives nothing, while the scammer disappears with both the deposit and all the information needed for identity theft.

Some of these fraudulent advance fee loan companies will make repeated demands for money from their victims, convincing them that upon looking up a current credit report, their ratings require a larger deposit than was first quoted. Another common excuse is that the original lender has backed out, but for a larger fee, they can secure another loan for the consumer. With these tactics and others, scammers have often convinced consumers to send substantial sums of money three or four times before they realize they have been victimized.

Usually, by the time the consumer has given up on receiving the funds they expected, coming to the realization they have been scammed, the perpetrators have disappeared. The toll free numbers provided are disconnected or are answered by a recording or machine, the operation probably moved to a new location to stay one step ahead of the law and groom a new batch of potential victims.

No legitimate company will ask for funds in advance of a loan, nor will it ask for any fee to be wired to them directly by Western Union, Moneygram, or any other wire service. Fees incurred in a legitimate loan generally are deducted before the funds are dispersed. These requests should be a clear warning to the consumer, as should any loan company that is pressing you for an instant decision on their offer.

What to Do if You Have Fallen Prey to Advance Fee Loan Fraud

Reporting this crime is essential. Many are ashamed to admit that they have been conned by such schemes, failing to report the fraud due to embarrassment. Those that do not make these crimes known leave the door open for these predators to strike again. While reporting such crimes does not always assure that the scam artist is caught, it does raise awareness of these schemes, shrinking their pool of potential victims. Filing a complaint with the Federal Trade Commission can be done online in approximately ten minutes. This small investment of your time can help towards shutting these operations down before they victimize scores of other unsuspecting consumers.

If these criminals have collected your personal identifying information. identity theft is a serious risk. With access to information from your social security card, driveR s license, pay stubs, and bank statements, stealing your identity will be quite easy, allowing these scammers to use your credit for their own purposes. Thousands in debt could be run up in your name in a very short period. Checking your credit report every three months to monitor for fraudulent activity is a good idea under such circumstances. If there is a problem, file formal disputes with each credit bureau.

Copyright В© 2004 – 2015. DirectLendingSolutions.com


Consumers warned of loan scams. #auto #loan #calculator


#loan today
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By Kevin McCoy, USA TODAY

A flurry of advance-fee loan scams is victimizing consumers across the USA and Canada, the Council of Better Business Bureaus warns.

Consumers who respond to phone calls or ads that purportedly guarantee loans to those with poor credit instead lose hundreds of dollars or more in fees demanded by the suspected scammers.

The frauds follow a typical pattern. Consumers call a toll-free number and are told to submit credit information over the phone or fill out paperwork to be mailed later. In exchange for a $5,000 to $100,000 loan, they are told to wire or mail a money order for $500 or more to pay processing fees or other charges.

The applicants never get the loan, and they lose what they paid in fees. They also risk having their identity stolen if they provided a Social Security number or other personal data to the scammers.

“People with the poorest finances are being victimized,” said Steve Cole, CEO of the Council of Better Business Bureaus.

Although the group had no data on the number of victims, spokesman Stephen Cox said workers in the council’s 129 local bureaus have fielded a rise in complaints about the alleged scam.

Nata Clegg, a 30-year-old legal-office worker from Fort Worth, said she almost lost $607 this month when scammers told her she qualified for a $5,000 loan.

Luckily, Clegg checked the address listed by the purported firm, Elmhurst Financial Loan Corp. and discovered the location was actually a Boston Market restaurant in Wisconsin.

Clegg immediately called her husband, John, who had gone to a Texas Wal-Mart to wire the required fees.

“I got him just in time,” Clegg said. “We were really, really fortunate not to fall victim to this.”

Others haven’t been as lucky.

According to the council, scammers using the name B T Financial Group hijacked the website of an Ohio insurance firm near Cleveland late last year. Consumers who responded to loan offers saw the insurance firm’s identifying information online. But new phone and fax numbers had been set up by the suspected scammers.

Several victims lost as much as $1,000 each in fees wired to Canada, the council said.

Better Business Bureaus across the country advise consumers who need a loan to search for a reputable local lender. Although fees may be required, legitimate lenders usually deduct them from the loan.

“It is best to double-check any and all loan offers with the BBB to find out if the business can be trusted,” Cole said. “We can tell you if other consumers have filed complaints” and try to “verify the legitimacy” of the purported lender.


Payday loan and cash advance scams exposed! #auto #loan #rates


#payday cash loans
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Welcome To Scammer-Alert! Top Online Scams Exposed!

Learning to avoid payday loan scams

Internet PayDay loan scams are a very serious problem. The amount of scam artists selling cash advance loans on the Internet is increasing daily. As you may already know Scammer-Alert.com is dedicated to brining awareness to these Internet scams. As usual, we have done extensive research on virtually every payday loan company we could find on the Internet. I’m exposing the truth behind the fast cash loan, and providing you with a short review of the most honest companies out there. There are numerous payday loan companies looking to rip off hard working people just like you and me, and without the right information you could easily find yourself trapped in an endless cycle of payments.

Every now and then all of us need some extra money to pay for car repairs, school supplies or any number of unforeseen expenses. It happens to everyone. I hope to provide you with the knowledge and expertise to spot the scammers and find the PayDay loan company that suits your needs, not theirs.

So why are there so many Payday Loan scams on the Internet?

The internet is an attractive venue for scam artists to search for honest people looking for cash loans. The most appealing is the fact that you never see them. Doing business on the Internet is very attractive to scam artists because it is very easy for them to hide their true identity. Companies using the Internet can create virtually any image they want you to see. Just because a company has a nice looking web site doesn’t mean they are an honest group of people. Web sites can be set up in a matter of hours, and can be taken down in just a few minutes. The Internet makes it simple to close up shop and disappear almost instantly. It is also very cheap, for a just a few dollars almost anyone can get an internet web site hosting account and email service.

Some of these scam artists are so good they can even scam other companies out of these services, thus making it 100% free for them! The Internet also provides a great pool of new people to rip off. Scam artists know that in order for them to keep making money they have to keep finding new victims. Since the Internet is world wide it makes a perfect place to find new people to exploit and steal from.

Many honest, hard working people looking for payday loans are unaware of scams and the unethical tactics they use to capture new customers. Most the time these sites were set up as phishing sites. Phishing sites are designed to collect personal information on you such as your name, social security number, phone number, and bank account numbers, etc.. This information is then used to get credit cards, drain your bank accounts, or worse your information is sold. Sometimes your identity is sold to the highest bidder, who uses it to defraud the government, avoid taxes, or even sold to illegal immigrants so they can gain employment.

I did find several sites that were not designed to collect information, however they were still usually rip offs, with very short payment terms, and high interest rates. They were more than happy to loan you money, however 9 out of 10 times the loan time was very short, which means you constantly had to request extensions which of course comes with a fee. Also the interest rates for these loans were sometimes as high as 350%! That means if I borrowed $1000, they expected me to pay back as much as $4500!

Now I don’t know about you, but that sounds like highway robbery to me. Even worse these companies had extremely high late fees, in some cases if you were just 1 day late you could expect to pay a few hundred dollars in fees.

Here’s what I found out about cash advances

Over the last 6 months I have signed up for payday loans from over 70 different companies on the Internet. I contacted their customer service departments, and took advantage of every service they offered. I also did extensive research into the back grounds each of them. While some of these companies provided an excellent service, the large majority were complete and total frauds.

After completing my exhaustive research I did manage to find a handful good companies that are honest and up front about how they loan money. All of my recommended lenders don’t require you to fax any information into them, and I had the cash direct deposited in my bank account within 1 business day. Each of them had a large, helpful, and courteous staff who answered my questions. Most important of all they had a toll free number I could call at any time. I was shocked at what I found while investigating the multitude of web sites out there, but I expect more and more of these scam artists in the future. As always I will keep you updated on my findings.


Consumers warned of loan scams. #omni #military #loans


#loan today
#

By Kevin McCoy, USA TODAY

A flurry of advance-fee loan scams is victimizing consumers across the USA and Canada, the Council of Better Business Bureaus warns.

Consumers who respond to phone calls or ads that purportedly guarantee loans to those with poor credit instead lose hundreds of dollars or more in fees demanded by the suspected scammers.

The frauds follow a typical pattern. Consumers call a toll-free number and are told to submit credit information over the phone or fill out paperwork to be mailed later. In exchange for a $5,000 to $100,000 loan, they are told to wire or mail a money order for $500 or more to pay processing fees or other charges.

The applicants never get the loan, and they lose what they paid in fees. They also risk having their identity stolen if they provided a Social Security number or other personal data to the scammers.

“People with the poorest finances are being victimized,” said Steve Cole, CEO of the Council of Better Business Bureaus.

Although the group had no data on the number of victims, spokesman Stephen Cox said workers in the council’s 129 local bureaus have fielded a rise in complaints about the alleged scam.

Nata Clegg, a 30-year-old legal-office worker from Fort Worth, said she almost lost $607 this month when scammers told her she qualified for a $5,000 loan.

Luckily, Clegg checked the address listed by the purported firm, Elmhurst Financial Loan Corp. and discovered the location was actually a Boston Market restaurant in Wisconsin.

Clegg immediately called her husband, John, who had gone to a Texas Wal-Mart to wire the required fees.

“I got him just in time,” Clegg said. “We were really, really fortunate not to fall victim to this.”

Others haven’t been as lucky.

According to the council, scammers using the name B T Financial Group hijacked the website of an Ohio insurance firm near Cleveland late last year. Consumers who responded to loan offers saw the insurance firm’s identifying information online. But new phone and fax numbers had been set up by the suspected scammers.

Several victims lost as much as $1,000 each in fees wired to Canada, the council said.

Better Business Bureaus across the country advise consumers who need a loan to search for a reputable local lender. Although fees may be required, legitimate lenders usually deduct them from the loan.

“It is best to double-check any and all loan offers with the BBB to find out if the business can be trusted,” Cole said. “We can tell you if other consumers have filed complaints” and try to “verify the legitimacy” of the purported lender.