You’ve found a Comparison Site but now how do you choose the Payday Lender?
It wouldn’t be wise to simply pick one based upon how attractive their website looks, or how many TV Ads you see for that company. Consumers are best advised to do some research into the Lender they want to use. Why? The company you choose will have access to your financial information – and Bank Account. So review first.
When choosing your preferred Lender, use the comparison sites filters to help you decide. LenderSeekers.co.uk have a uniquely wide range of filters to help you – use them don’t use them, but make sure you review the Lenders. Is it important that you do not enter into an agreement whereby the Lender uses the Continuous Payment Authority service? Then using a filter, you can exclude those lenders that insist upon using it, leaving only those that do not.
The same applies to any of the other criteria the filters work with. A useful tool – so look for Comparison Sites like LenderSeekers.co.uk that offers filters.
Of course, it should end there. You should do a quick Google search and see if there are any negative reviews floating about; with regards to these, a good Lender would respond to any negativity and address it, so read a Lender’s responses, they can reveal a lot about the company’s ethos.
Finally, be careful out there – we would advise against accepting loans from cold callers; often these are fraudsters pretending to work for a legitimate company. A legitimate company will have a warning on their website if their name is being used inappropriately and any advice they offer should be heeded. We would recommend you apply online via the Lender’s application form.
This Blog was brought to you by LenderSeekers.co.uk
Payday loan phone scams, part 1
Unfortunately, after 10 years of fighting for their rights to trade honestly and respectably, the payday industry now faces a new threat to their reputation. Payday phone call scams have become an increasing menace to the unsuspecting public. So much, so that these scammers can convince a person who has never taken out a payday loan that he or she is in arrears and must pay up immediately. These scams usually come in the form of phone calls and victims are harassed, intimidated, and bullied into coughing up the cash that the caller is asking for. Often the victim is targeted and caught unawares. The person on the other end of the line will claim to be anything from a police constable to a sheriff to a High Court official. The caller usually poses as a friendly person who is trying to help the victim avoid the bailiffs by explaining that if they transfer the required amount, all shall be well. Payday phone scams trap people into parting with their hard earned cash every day. To boot, these shysters are also online.
How to identify payday phone call scams
It was not long ago that a ring of con men was uncovered in India. They had a scam going where they were calling people in the USA, and posing as officials, policemen, debt collectors and so forth. This consortium of criminals managed to pull in 5 million dollars before they were caught. So if Indian conmen can cheat and steal from American citizens, then who knows what we are up against. Here are a few tips to help you identify payday phone call scams.
- If you are cold-called by a ‘payday’ company who is offering you a great deal on a loan, just turn them down. Companies that cold call you are rarely above board.
- If you apply for a loan online, however, and are asked to pay a fee upfront, do not comply. No real payday lender will ask you to pay a fee before you get the loan.
- If you are approved for a loan online or over the phone without a credit check or despite a bad credit record.
- If you get a call from someone who says that he is a member of the police force, the sheriff or bailiffs office, or from the High Court who is talking about a loan or a debt that you have no recollection of or cannot remember applying for
- If you get a call from someone who gives you an official title and then explains that the sheriff or bailiff are en route to your house or business.
- If you have already fallen for the scam and transferred some money, do not make it worse when they call back and ask for you to re-transfer because the initial amount did not come through and time is running out.
All of the above are examples of payday phone call scams. If you find yourself in the unfortunate situation to be a victim of a payday phone call scam, then one of the best courses of action is to take down the name, the company or official body, and telephone number of the person you are talking to and hang up. Call them back. 10 out of 10, you won’t find them.
The Payday phone scam: it has been going on for a while and has become a major problem for the industry. Scammers continue to ride on the backs of payday companies. Over the past 18 months or so, conmen have begun to target innocent victims online and over the telephone threatening to seize businesses, send sheriffs, and freeze bank accounts unless these fictitious loans are paid immediately. People get scared and pay up on loans that they never took out. Payday phone call scams have been officially dubbed ‘vishing’, and it looks like they are here to stay. As soon as one of their methods is detected, they change the tune of their song and quickly manipulate the scam to keep on cheating their victims.
How a small business can get caught in a payday phone scam – An example:
Martin owns a small coffee shop in the heart of London and is doing well for himself. Most mornings the early shift runs into lunch without stopping, and the staff are kept very busy. Martin received a phone call on one such busy weekday from a man claiming to be a sheriff from the High Court. The man identified himself as Steven Roberts and told him that he was overseeing a court judgement against him by a firm that claimed he owed them money for an online loan. Mr. Roberts said he was calling to find out if Martin knew anything about it.
Martin had taken out a payday loan online a few years back but thought that he had repaid the entire amount. Mr. Roberts went on to inform him that this was apparently not the case and that he still owed them 1,987.12 pounds, and that his case was being heard at that very moment. He would have to make payment, or the bailiff would be coming over to the coffee shop in the next few hours.
Imagine Martin standing in a bustling coffee shop, staff rushing to and fro, customers demanding service and now the threat of the bailiffs’ imminent arrival. Martin jumped to it and transferred the money over the internet immediately. Check! Martin has been pulled into a payday phone call scam.
Unfortunately, that was not the end of the line for poor Martin. Mr. Roberts was not finished calling Martin. Shortly afterwards, Martin got another call. Mr. Roberts once again at the other end of the line informed Martin that the payment did not go through, that his bank had stopped the payment for some reason and that he should take it up with his bank. In the meantime, however, Mr. Roberts advised Martin that to make another payment into another account to keep the bailiffs at bay while he sorted out the first payment mix-up with his bank. Again out of exasperation, Martin made a quick transfer and went back to finish serving lunch to his customers. Once the dust settled, and Martin could sit down with the day’s takings and think about what had happened, he realised that something did not compute. He immediately called his bank.
It goes without saying that you should be suspicious, no matter how convincing the caller is. Don’t rush, think things through and check thoroughly!
Continued in Part 2