Christmas payday loan scams be careful
Always be careful with payday loan scams but with an increase in payday loans for the holidays and Christmas season scams have increased which means more people will be looking cash advances for over and before Christmas. Here is the main scam to look out for over Christmas, if you are going to be applying for a payday loan always go to the company who pays the money and don’t use a broker as they charge and will sell your information to other financial website who will in turn phone you and send you spam emails in a hope they can get a you a high APR product.
Christmas payday loan scams online
People use payday loans to tie them over until there next payday for many reasons and one reason this time of the year is Christmas and holidays. Payday loans are expensive and charge a very high APR so only use them if you cannot get the money else where. Online brokers are becoming more and more widespread because there is so much money involved when it comes to finding payday loans and other financial products. This scams involves brokers and there extortionate fees they charge even before they find you a lender that may or may not except you for a payday loan. Many people use brokers because they have either bad credit or no credit history and think it is there only option when it comes to getting a loan from a company.
This is how the scam works
You apply through a payday loan broker who promises to get you the payday loan you want, so you give them all your details they then make out they are searching for the perfect loan just for you, the next screen then tell you they have found a number of payday loan companies who will except your application and have the loan in your account within a few hours, all you have to do is pay the admin fee and the money is yours, you pay the fee and are transferred to the payday loan company where you apply and get turned down. But getting your money back from the broker is next to none as they make excuses like we found a loan company and you where turned down, it is not our fault.
So you are in square one with no payday loan and a bill you have paid for £10, 20, 30 0r £50. But after giving your details to the broker you are now being emailed and phoned everyday with other companies offering you financial service. Because your details along with your email and phone numbers have been sold onto the next company who wants to try their luck with you.
Tips on Payday loan scams
- When looking for a payday loan always use the company who pays the funds not a sister company or a brother company or a company who can get the money for you for a fee.
- Only apply once with the same company.
- Never give your details out over a unsecured connection. HTTP is not secure HTTPS is secure make sure to check this before you apply.
- Never ever pay money to receive money this is totally defeating the object of applying for a loan.
- Only use the company paying you the money.
