For many Americans, debt is an unfortunate reality. Whether you’ve suffered an injury that left you with astronomical medical bills or your car needed an unexpected and pricey repair, the overwhelming majority of Americans carry some form of debt. As such, you may want to take out a loan to help repay some of the funds you owe. However, the last thing you expect is to fall into more debt from having your identity compromised as a result of loan scams. As such, if you’re interested in applying for a loan, the following blog explores the signs you should look for to help determine is a lender is legitimate. In addition, you’ll learn the importance of working with an Arroyo Grande consumer attorney to help you if you believe you are a victim of these schemes.
What Should I Know About Loan Scams in California?
Unfortunately, loan scams are growing increasingly common, as they often target those who have fallen into debt. Generally, when someone is in debt and desperate to take out a loan to help, they may be willing to accept the first help they can receive. Most often, these scams charge an upfront fee in exchange for the loan, which is never delivered.
Not only do these scams work to take your hard-earned money, but they also lead to identity theft. When you apply for a sham loan, you’ll likely need to supply a considerable amount of personal information, like your full name, date of birth, and social security number. This information can then be used by the scammers to take out real loans in your name, leaving you in even more debt.
What Are Signs That a Loan Is Not Legitimate?
If you are looking to obtain a new loan, it’s imperative to understand the signs that a loan may not be legitimate. Generally, one of the most important things that indicates a loan offer may not be real is if the lender doesn’t need your credit history or informs you that you will be automatically approved.
In addition to guaranteeing approval, you’ll find that these scammers often require hefty upfront fees to apply or be approved. While some legitimate lenders may require a fee, most will deduct this cost from your loan or include it in your monthly payments.
Finally, if the lender does not have a physical location, it is likely a scam. Most lenders have physical addresses where they operate from, and if there is nothing listed, the lender likely is not legitimate.
If you have reason to believe you are the victim of a loan scam and subsequently have had your identity compromised, it’s critical to connect with an experienced attorney. At Loker Law, our team understands how complicated these matters can be to navigate, which is why we will do everything in our power to help you recover from these scams. Contact us today to learn how we can assist you.
