How To Tell if a Payday Lender is Legitimate
You can now apply online for a payday loan and get the funds you need to sort out any emergency should one arise.
19/06/2021
Most Americans today live paycheck to paycheck. If you barely have enough cash set aside to cater for emergency bills, then you can benefit immensely from a payday loan. These loans basically act like salary advances that are provided by payday loan companies to cushion you from unexpected expenses. They’re usually unsecured loans that correspond to a portion of your monthly paycheck.
We all need some fiscal relief from time to time. Even the most financially responsible individuals may sometimes struggle to get by. Thankfully, you can now apply online for a payday loan and get the funds you need to sort out any emergency should one arise.
Here are 6 ways you can tell if a payday lender is legitimate:
1. Check their online presence
The most important way to confirm the legitimacy of a payday loan lender is to check whether they have an online presence. Most lenders usually have website profiles and social media accounts where they market their services. However, the proof is always in the pudding: online reviews provide a lot of crucial information about the authenticity of a company. Therefore, ensure you study as many reviews about your preferred payday loan lender as you possibly can. If the information you find about a particular lender points to a possible rip-off, then it’s better to look elsewhere.
2. Observe whether they require collateral of upfront fees
Payday loans have become quite popular in recent years because of their convenience and ease of access. However, some loan scammers usually pose as legitimate payday loan lenders, even going as far as creating decent business profiles online. Once they convince a potential borrower that they’re legitimate, they proceed to request for a loan collateral or upfront fees.
These scam lenders might request you to wire some cash to their bank account for loan processing. Alternatively, they could ask for your debit/credit card info as a form of loan collateral. Be wary of such red flags. Genuine payday lenders will not request for upfront fees of collateral to process your loan.
3. Avoid falling into the trap of spam emails
Do you often receive emails out of nowhere from firms providing unbeatable deals, offers and bonuses? Strangely, millions of individuals receive such emails and some of them end up falling prey to scam deals. Payday loan scammers will often send hundreds of spam emails to unsuspecting customers, hoping to reel in some desperate individuals. If the deal’s too good, think twice. Avoid clicking on email attachments from people you don’t know about. More importantly, don’t apply for a payday loan from shady lenders who you don’t trust.
4. Perceive how comfortable you are with the deal
Psychologists usually advise us to trust our gut feeling when making big decisions. If you’ve been having discussions with a potential payday lender but you suddenly notice something that doesn’t quite feel right, then it’s best to pause and reconsider. Some illegitimate lending companies employ overly manipulative and aggressive tactics in a bid to coerce you into taking a loan. They might use threatening discourse to make you feel flustered and desperate for quick cash. In case you feel uncomfortable during any stage of your loan application, ensure you take a few steps back and ponder over your feeling of distaste.
5. Find out whether they engage phantom debt collectors
Another way to discern the validity of your preferred payday lender is by checking whether they utilize phantom debt collectors to coax customers into repaying their loans. Once you get a payday loan with an unscrupulous lender, you will be contacted by a phantom debt collector to remind you about upcoming due dates for loan repayment. These collectors might also bully you into paying up, threatening you with legal discourse and potential jail time in case you fail to repay the loan on time. After conjuring fear and panic, the phantom debt collectors will request for your financial and personal info which they’ll use to siphon money from your bank accounts. This is a huge red flag that you should note down and avoid under all costs.
6. Check whether the payday lender is registered in your state
It’s a legal requirement for lending companies to be registered in all the states where they conduct business. You can find out whether a specific lender is registered by contacting the state’s attorney general office. In case the lender doesn’t show up in the attorney general’s record, then run to the hills. Your information security should always be kept top priority. In an age where cyber-criminals loom large, it’s important to be extra vigilant and to avoid dropping your guard.
These are just some of the ways you can tell if a payday lender is legitimate.