Six Tips On How To Spot A Bad Credit Loan Scam

The suffering and desperation caused by the ongoing credit crisis and job losses, have spawned a whole new growth industry.Bad Credit Loan Scams It's a particularly horrible phenomenon, because the people that operate these scams are preying on those that most need help, and they don't care if they put the last nail, in a family's financial coffin.Huge numbers of Americans that are presently buried under debt, now suffer from bad credit too, and they face a daily barrage of advertisements like these.Looking For A Loan Or Credit Card But Don't Think You'll Qualify?Turned Down By A Bank Because Of Your Poor Credit History?Get An Instant Loan. Guaranteed.

No Credit Check And Low Interest!A person that's desperate for a loan is easily tempted by advertisements and websites like these, because they offer a simple and quick respite from misery.It's said however, that forewarned is forearmed;So let's Look At The Tip-Offs To Rip-Offs. Just one of the following should cause you to raise your antennae, and more than one of them should send you looking for another lender.1) If you're offered a loan on the the phone.Companies that do business by phone in the U.S. are forbidden by law to promise you a loan, and are forbidden from asking you to pay for it before they deliver.2) The Federal Trade Commission (FTC), which is a federal agency that investigates and eliminates unfair and deceptive trade practices says;"If a lender asks you to pay a fee for the promise of a future loan or credit card, then you're probably dealing with a con artist".3)

A lender who isn't interested in your credit history.A lender that says that he won't check your credit score, should certainly make you suspicious. Why doesn't he care? Any advertisement that says things such as, "Bad credit? No problem" or "We don't care about your past. You deserve a loan" or "Get money fast" or even "No hassle — Guaranteed", frequently suggests a scam.4) A lender who uses a copy-cat names, and similar websites.Con artists will quite often choose names for their organizations that are very similar to well known and well respected companies, and they're websites will look very similar to those that belong to the legitimate companies. Call directory assistance, or locate the lender's number in the phone book, and then call the number to verify that they are really who they claim to be.Get a physical address too, because a company that advertises a PO Box as its address is definitely one that needs to be checked out with the appropriate authorities.5)

A lender who is not registered in your state.Both loan brokers and lenders are required by law to register in the states where they do business. In order to verify their registration, call your state Attorney General's office, or your state's Department of Banking or Financial Regulation.6) A lender who asks you to pay an individual, or to wire money.Never make a payment directly to an individual for a credit card or loan, because no legitimate lender would ever request such a thing.If what you read here prevented you from getting ripped off, then please help others.If you encounter a company that's doing any of the above, then please tip off the relevant authorities.Where To ComplainThe FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them.

To file a complaint or to get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. Finally - A Little Bit Of Advice That's Not A TipIf you have debt problems, then the very first thing that you should do is to contact your creditors, and attempt to resolve the problems, and the sooner the better.If you can't resolve your problems alone, or feel that you need some help, then your first port of call should be a credit counseling service.There are nonprofit organizations in every state that counsel and educate people and families about debt problems, budgeting, and using credit wisely.These services are often free, and if there is a charge, then it's not likely to exceed $25.00 - and credit unions, universities, military bases, and housing authorities frequently offer low cost advice as well.To learn more about dealing with debt, including how to select a credit counseling service, visit ftc.gov/credit.

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