A payday loan is a good way to get the money you need when you need it and get yourself out of a bind. But it’s also a good way to fall victim to a scam.
Below are some helpful tips to protect yourself from payday loan scams.
Don’t do business with anyone who initiates contact with you
One of the more common payday loan scams happens when a person is contacted by a “payday loan company” by phone or email. The scammer pretends to be a representative of the company and offers the person a loan or claims the person owes money for a previous loan and tries to collect on it.
These fake companies often use non-business email addresses like Yahoo, Hotmail, or gmail and may contain broken English or spelling or grammatical errors. They may also threaten to sue you, arrest you, or garnish your wages in an effort to scare you into paying up.
If you receive a call like this, ask for the phone number and address of the company. A scammer will not want to give out any such information, but a reputable company gladly will. Better yet, only get a payday loan from a company for which you make the first contact.
Don’t send any money in advance
If a company asks you to send money in advance for “taxes” or “processing fees,” it’s more than likely a scam. Reputable payday loan companies collect all fees at the time your payment is due.
Check with the Better Business Bureau
Before doing business with a payday loan company, check their rating with the Better Business Bureau. This will give you an indication of how trustworthy the company is.
Check to see if they have a physical location
Scams are typically performed by fake companies that don’t have a physical store location. Check to see if a payday loan company has a physical location that you can actually visit in person.
Know the laws in your state
Each state has its own laws regarding payday loans. For example, payday loan centers in South Carolina are only allowed to charge $15 for every $100 borrowed, and you may only borrow up to $550 at a time. Plus, you may only have one outstanding payday loan at a time.
If a company tries to charge you more than is allowed by your state, offers you more than the allowed limit, or offers to let you have more loans than is allowed, you’ll know that it’s a scam.
Put Your Trust in Carolina Cash Fast
Carolina Cash Fast carries an A+ rating from the Better Business Bureau and features two storefront locations in Clover and Fort Mill, South Carolina. We are a member of the Community Financial Services Association of America’s Best Practices. As members, we’re required to abide by a list of best practices that ensures compliance with all state lending laws and protection of your rights as a consumer.
We take pride in offering our customers a safe, reputable, and hassle-free lending experience. Visit us today and see how we can work with you.