Watch Out! Scammers Are About
Fake loan companies are out and about, trying to steal your personal details. Here’s how you can spot them and keep your finances secure.
In this article, we'll cover:
Recently, there have been reports of fraudulent companies and con artists pretending to offer people loans to obtain their personal information. Furthermore, these criminals frequently charge an ‘advance fee’ for their services which too many individuals are unfortunately drawn in by.
These criminals often create websites similar to recognised firms. They are unfortunately part of the deception used to persuade victims their offers are genuine.
As a result, we thought we’d help you identify a fraudulent loan provider should you see one:
01. Never disclose your bank card information
No reputable loan provider will ask for your bank card information straight away – or ask for an advance fee. Granted, if accepted for a loan, they will ask for details so funds can be deposited into your account, but you’ll never be asked for bank details before the loan has been approved.
02. Don’t accept a call out of the blue
It is extremely unlikely that a lender will contact you through a telephone call or text without you making the initial application yourself. Some criminals make a living just by obtaining contact details and dialling individuals randomly. Unfortunately, this tactic sometimes pays off for them.
03. Consider your research
Although criminals frequently create websites to advertise their fraudulent loan companies, it’s worth conducting research to identify more information. For example, using Money Saving Expert or Review Centre can give you a good insight as to whether the company is legitimate or not.
APRs from 5.8% to 89.9%
We are a broker, not a lender.
Unsecured Loan Representative 69.9% APR
Borrowing £7,500 over 36 months, repaying £502 per month, total repayable £18,083. Total cost of credit £10,583. Interest rate 69.9% (variable). The lenders on our panel offer loans for 12-60 months, with rates from 5.8% APR to 89.9% APR. The Representative Example is based on all loans paid out by lenders between 19th Apr 2022 and 23rd Dec 2022.
Secured Representative 11.7% APR
If you choose to add fees to the loan: Assumed borrowing of £25,000 over 120 months, plus a broker fee of £2,500 and a lender fee of £250 would result in monthly repayments of £345.55, the borrowing rate is 8.6% (variable), the APRC is 11.7% (variable), total charge for credit £16,466.00 and the total amount payable £41,466.00. You can opt to pay the lender and/or broker fees upfront, your adviser will discuss these options with you.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it. All rates vary subject to loan amount, loan type and status. Repaying your debt over a longer period of time may increase the amount you pay.
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