We are living in an era where everyone is working hard to earn money to maintain a lifestyle. This sometimes opens doors for scammers who trap their victims in a never-ending debt cycle. Some scams are identifiable while others are not and can cause trouble in your financial life.
Several lending institutions operate out of law, promise huge deals & quick services. But how do you determine which one of them is reliable? Well, there are some ways in which you can differentiate a scam and a legitimate deal.
In most cases, the best thing to do is to follow your instinct. If something feels like it’s too good to be true, then you should be careful and double check before providing them your personal details.
How to Check the Red Flags of a Loan Scam
You can decipher a fraud lender by checking out some signs. Some of these red flags are the following:
Pre-approval: You need to be aware of fraud emails that provide you pre-approval for a car title loan that you never applied for. In several cases, unrequested emails are sent by scammers and identity thieves.
Hard Contacting Details: Unreliable lenders avoid disclosing their contact information and address. Thus, it is important to check their physical location and contact details before signing a deal.
Credit checks: You should be aware of the loan requirements before applying since some loans do not perform credit checks. So, find out why they need your account details.
No clear location: If a lender does not have a physical office and does not provide any address to contact them, you should look for other options.
Upfront payments: Remember, you don’t have to pay any amount upfront to apply for a loan. If any lending institution asks you to deposit money before getting a loan, then it must be a scam.
Bad grammar: It has been found that scammers usually use poor grammar in emails since they have bad writing skills. This is the case when scammers are from other countries.
What To Do If You’ve Been Scammed?
If you feel that you’ve been scammed by some institution, then you should immediately freeze your bank account first. The next step is to contact the police department and Better Business Bureau as soon as possible.
If you have also given your personal and financial details to scammers while applying for an auto equity loan, instantly contact Canadian Anti-Fraud Center to report the crime.
To stay away from these scams, instead, apply for a secured loan from a reliable lender like Equity Loans Canada. We have been operating in Canada for several years and are helping people financially. If you are in need of financial help, you can contact us at our (toll-free) number 1-844-567-7002 or visit our website online.