Fraud and scams can be rampant on the internet today. Many consumers report cases of payday installment loan fraud and telemarketing scams. The FBI has released tips to help prevent you from being victimized of such cyber-crimes and fraud schemes.
How to Prevent Telemarketing Fraud of Payday Installment Loans:
When you send money to people you do not know personally or give personal or financial information to unknown callers, you increase your chances of becoming a victim of telemarketing fraud. Here are some warning signs of telemarketing fraud, usually from a caller:
1. “You must act ‘now’ or the offer won’t be good.”
2. “You’ve won a ‘free’ gift, vacation, or prize.” But you need to pay for “postage and handling” and other charges.
3. “You must send money, give your credit card or bank account number or have a check picked up by courier.”
4. “You don’t need to check out our company with anyone.” The callers say you do not need to speak to your family, lawyer, accountant, local Better Business Bureau, or consumer protection agency.
5. “You don’t need any written information about our company or other references.”
6. “You can’t afford to miss this ‘high-profit, no-risk’ offer.”
In case you have received calls with these or similar “lines”, just say “no thank you” and hang up the telephone. This is the best option in order to avoid payday installment loan telemarketing fraud.
Tips for Avoiding Payday Installment Loans Telemarketing Fraud:
Before you apply anything by telephone, remember:
1. Don’t apply with an unfamiliar loan company. Legitimate lenders of payday installment loans understand that you want more information about their company and are happy to provide this information.
2. Always ask for and wait until you receive written material about any offer. If you get brochures about costly investments, ask someone whose financial advice you trust to review them. But, beware because not everything written down will be always true.
3. Always check out unfamiliar loan companies with your local consumer protection agency, Better Business Bureau, state attorney general, the National Fraud Information Center, or other watchdog groups. Unfortunately, not all bad businesses and lenders can be identified through these organizations.
4. Get the salesperson’s name, business identity, telephone number, street address, mailing address, and business license number before you transact business. Some con artists give out false names, telephone numbers, addresses, and business license numbers. So, verify the accuracy of these information.
5. Don’t pay in advance for services. Payday installment loan lenders do not ask for upfront fees.
6. Always take your time in making a decision. Legitimate loan companies won’t pressure you to make a snap decision.
7. Never respond to an offer you don’t understand thoroughly.
8. Never give out personal information such as credit card numbers and expiration dates, bank account numbers, dates of birth or social security numbers to unfamiliar loan companies or unknown persons. Be aware that your personal information is often brokered to telemarketers through third parties.
9. Most of all, if you have information about a fraud, report it to state, local, or federal law enforcement agencies.
There is no better way to prevent fraud and scams than to avoid them. Be vigilant. Apply for payday installment loans wisely.