7 Personal Loan Scams and Signs You Must Know

With the proliferation of the internet, it is now easy to learn about people’s behaviours online. The data captured during this learning process is used to serve people targeted adverts.

What this means is, if you are always visiting flight booking sites, or looking for low rate air tickets online, or visit a lot of sites that talk about travel and tourism, then other flight booking sites can target you with personal loan scams Ad messaging that talks directly to what you are looking for.

A recent BBC investigation in the United States of America has proven that a digital agency, Cambridge Analytica, used this technique to reach over 50 million Americans in the 2016 general elections. This shows how powerful this capability is. Data scrapping and usage is applicable to almost any business that has an online presence.

This is a good thing but it also has a huge impact on the outrage of scam on the internet. When people have learned so much about you, they can easily send you the exact message with shinny offers like the one you want to see, and if they are not legit, you can easily get scammed.

Now Let’s Talk About the 5 Personal Loan Scams Signs

You can also be scammed when looking for quick loans online to solve urgent needs. If you don’t like your loan provider’s terms or have bad credit when applying, an online lender might cater to your specific needs. But it can be harder to tell a scam from a legit offer. In this post, we discuss the red flags to look out for when applying for a loan, before you make the decision.

7 Personal Loan Scams and Signs You Must Know

No physical address

This is the first danger signal. If a financial service provider wants to give you a loan and that they don’t have a physical address or contact information, put the brakes on your loan. Scammers make it difficult to get in touch later, thus avoiding any legal action you might want to pursue against them.

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Your offer is expiring soon and you must act now

If they won’t give you time to even think things through or do due diligence about them, or compare offers from other lenders, then you’ve likely found a scam. Legitimate lenders offer transparent and almost steady rates that depend on your credit score. Unnecessary pressure tactics are designed to trick you to act quickly before you’re able to spot a scam in progress.

You must avoid the Personal Loan Scams when You’re guaranteed an approval for a loan

We’ve seen a lot of prospects almost pressure us to promise them guaranteed loan approval before they can input their details and even apply for the loan. There’s no such thing as a guaranteed loan. For approval, a lender will typically check your credit score and verify your information.

At Page, they use sophisticated Machine Learning Algorithms to perform the first stage of these credit checks. Until the algorithm gives us the go-ahead, we cannot say who will get a loan and who will not. Scammers lure you in with guaranteed approval so they can collect fraudulent fees and other charges

Your loan offer is incomplete

Here’s a core truth you must know: the Lending Act requires all lenders to provide the complete terms of a loan, including the final cost of the principal plus interest, before you sign on the dotted line. If your offer lacks details, has some grey areas, contains spelling or grammar errors or otherwise raises an eyebrow, it could be a scam.

You have the right to request clarification on every information on the paper before signing. At Page financials, they have dedicated financial assistants that help you not just understand the offer letter, they also help you make informed decisions that will ease your repayment. Just shoot an email to customer@pagefinancials.com requesting clarifications from your loan officer and someone will attend to you.

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The lender isn’t registered with Central Bank of Nigeria (CBN)

The Federal Government requires that all financial services are registered with the Central Bank of Nigeria for regulatory purposes. This is in a bid to supervise the activities of such financial institutions to determine how fit they are to provide financial services to the public. The licenses differ, some are state-wise, some are regional while others are national.

You need to know which license your financial service provider has before you get involved. If you find a business isn’t licensed to operate in your state even if it’s licensed in other states don’t respond to its lending inquiries. You might have stumbled on a fraudulent website using a business’ name to make money.

Personal loan scams are real, and it is here to stay. While we cannot completely eradicate it, Page can help you stay alert by keeping tabs with these red flags. We understand these things can be a bit overwhelming in print or web, that is why Page Financials dedicate teams to handle face to face conversations with customers who need human interaction.

Any of their branches are wide open to you Monday to Friday from 8 am to 6 pm. You can walk in and have a discussion about your financial need. You can visit any of the Page offices in Nigeria. 23, Norman Williams Street, Ikoyi Lagos, 29, Opebi, Ikeja, Lagos, and 67 Mokola-Dugbe Road, Ibadan, Oyo state.

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A blogger who blogs about Business, Information Technology, Digital Marketing, Real Estate, Digital Currencies, and Educational topics that can be of value to people who visit my website
7 Personal Loan Scams and Signs You Must Know
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