If you’ve ever applied for payday loans online, much of your personal information is circulating on the web. While the site you applied on may be reputable, the information they get is often sold to lenders who may try and contact you with loan offers or discounts. If a scammer gets your information, they will try and get your money any way they can.
How Scammers Get Your Information
When you fill out a payday loan application online, your information stays out there. Even if you choose not to pursue the loan, your information can be sold to potential lenders and scammers who are willing to pay for it.
What They Do with It
Scammers don’t want to give you a loan, they want you to pay back the money you never borrowed. Some may threaten you with legal action and others may claim to be attorneys who represent an online payday loan company. Because they already have much of your information, they can make their claims sound valid.
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There are several ways you can protect yourself from online payday loan scammers. Here are certain ways to secure yourself against online payday loan scams:
- First and foremost, don’t give them any more information and stand your ground.
- Ask for written confirmation of the debt.
- Ask for all of the company’s information, including the phone number and the address.
- Lastly, report them to the Consumer Financial Protection Bureau (CFPB), and/or the Federal Trade Commission (FTC).
They will use strong arm tactics to scare you. Stand firm. When they can’t back up their claims and realize you aren’t falling for it, they will go elsewhere.
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Payday loans can be lifesavers under the right circumstance. If you apply for an online payday loan online, use a reputable site you can trust. Scammers give reputable companies a bad name making it difficult for people to get the funds they need in an emergency.