Greg's Corner

Tagged: loan scam Toggle Comment Threads | Keyboard Shortcuts

• 

  Geebo 8:00 am on June 2, 2023 Permalink | Reply
  Tags: lenders ( 2 ), lending scam ( 2 ), loan ( 4 ), loan scam, Scams ( 1,219 )   

  Think twice about that online loan 

  

  By Greg Collier

  There are few things more frustrating than when a surprise expense needs to be paid, such as an emergency car or home repair. If someone is short on cash, they might consider a loan. Then, to simplify matters, they may look online for a loan. Unfortunately, there is a veritable minefield to navigate while looking for a legitimate lender. One wrong virtual step could lead you into a scammer’s trap.

  For example, a Dallas area woman was looking for a small loan to have her car repaired. She filled out an application through what she claims was a legitimate lender. Once the application was completed, she started receiving offers from several different online lenders.

  One lender in particular told the woman she needed help with her credit score to get a loan. This lender supposedly had the solution. They would send the woman $1800 and by sending back the money it would improve her credit, so she could get the loan. The payment sent to the woman’s bank account was not legitimate. The scammers had contested charges with her bank to make it look like there had been an $1800 deposit. If the woman had sent the $1800 to the scammers, she would have been out $1800 of her own money. This is not unlike the fake check scam. Thankfully, the woman realized she was being scammed before sending any money.

  Legitimate lenders will never have you send them money. If a lender sends you money, then wants you to pay it back immediately, they’re trying to steal from you.

  If you’re looking for a loan online, you need to follow many precautions. Look for reviews, ratings, and complaints about the lender from reliable sources. Avoid sharing sensitive information such as your Social Security number, bank account details, or passwords unless you trust the lender and are confident in their legitimacy. Obtain loan quotes from multiple lenders and compare terms, interest rates, and repayment conditions. Be skeptical of significantly lower rates or overly favorable terms. And of course, if something seems too good to be true or feels suspicious, it’s better to be cautious and seek alternative lending options.

   

  Leave a ReplyCancel reply
• 

  Geebo 8:00 am on October 20, 2022 Permalink | Reply
  Tags: debt forgiveness ( 13 ), loan scam, Scams ( 1,219 ), student debt ( 15 ), student loans ( 15 )   

  Now is really the time to look out for student debt scams 

  

  By Greg Collier

  Ever since the government announced its student debt forgiveness program, we’ve been warning those eligible for the program to be on the lookout for scammers. This past Monday, it was announced that the application process is finally open. Along with that announcement, both The White House and the Federal Trade Commission have issued warnings about student debt forgiveness scammers and how to try to avoid them. We’re going to go over some of the warning signs so hopefully those who need relief the most won’t fall deeper into debt.

  The first thing to keep in mind is that the program is free. Scammers will either tell you that there’s a charge for the application or that they can fast track your application for a fee. Neither of these things are true.

  Another red flag is if someone approaches you about applying for the program. If you receive a voicemail or robocall from someone claiming to be from an organization with a generic name like ‘the Biden student loan forgiveness program’, they’re scammers. You have to apply first at the Federal Student Aid website at StudentAid.gov. Any form of communication that approaches you before you apply is probably trying to steal your personal and financial information.

  Scammers like to prey on confusion, and the government isn’t exactly helping themselves in that department. After you apply for the program, you may receive emails from the following government email addresses. Those include noreply@studentaid.gov, noreply@debtrelief.studentaid.gov or ed.gov@public.govdelivery.com. Carefully check the email addresses on the emails you might receive. Scammers will try to use similar looking addresses to fool you into divulging personal information.

  Lastly, the application process does not ask you to upload any financial documents or give any banking information. While some applicants may be asked for financial records later on in the process, they will not be asked for them while filling out the application. You will also not be asked for your Federal Student Aid number.

  You can read more about student debt forgiveness scams at the Federal Student Aid website.

   
• 

  Geebo 8:00 am on May 19, 2022 Permalink | Reply
  Tags: advance fee scam ( 42 ), gift cards ( 98 ), loan scam, Scams ( 1,219 )   

  Don’t pay advance fees for loans 

  

  By Greg Collier

  There are certain business you shouldn’t use if they solicit your business through email. One of those businesses is that of the online lender. These supposed lenders claim they’ll lend you thousands of dollars that they’ll get to you in no time flat. They may also claim that no credit check is needed, or that they’re not like the big banks when it comes to lending.

  If someone were to take one of these lenders up on their offer, a number of things could happen, and none of them are good. You could have your personal and financial information stolen, or you could be victim to a predatory lender with exorbitant interest rates. Think along the lines of those payday loan stores. However, the most common scam when it comes to online loans is the advance fee scam.

  Typically, when we talk about the advance fee scam, we’re talking about phony sweepstakes that scammers say their victims have one. Then the scammers ask for payment to cover taxes or processing fees. Scammers will keep asking for payments as long as they can keep the victim on the hook. Meanwhile, there are no sweepstakes that the victim won.

  This recently happened with a loan to a man in Arkansas who was looking to make some improvements to his home. He applied for some loans online before getting an email from a supposed lender. The lender promised that could get the money to his bank account in 15 minutes. All the man needed to do was pay them $200 in gift cards. After the man paid the initial $200, he was asked to pay another $200. He did, and still did not receive his loan. It was at this point the man realized he had been scammed.

  Legitimate lenders will never ask for payment in advance. They make their money through interest once the loan is paid back and not through outlandish fees. That’s not even considering no legitimate bank or financial institution will accept gift cards as payment.

   
• 

  Geebo 8:00 am on October 8, 2021 Permalink | Reply
  Tags: check scam ( 76 ), lending scam ( 2 ), loan scam, payment app ( 17 ), phone scam ( 45 ), Scams ( 1,219 ), security ( 46 ), text messaging ( 32 ), venmo ( 26 )   

  Scam Round Up: Don’t let strangers use your phone and more 

  

  By Greg Collier

  We’re closing out the week again with another trio of scams that have popped up around the country.

  ***

  Our first scam comes to us from Charlotte, North Carolina. Residents there have been complaining about a bold scam that takes advantage of your kindness. The scam involves people coming up to you asking to use your phone. The scammers will have some kind of story like hey’re car broke down and can they use your phone to call someone. Once they have your phone, they’ll open up whatever payment app you have on your phone and send all your money to the scammers account. In Charlotte, residents there have said that Venmo was specifically targeted, but this scam could be used on any payment app. The best way to prevent this from happening, outside of letting no one use your phone, is to enable the security features on your accounts. Usually, you can secure your accounts with a PIN or have them require your fingerprint or facial recognition.

  ***

  Speaking of North Carolina, the Better Business Bureau of Eastern North Carolina is warning consumers about phony lenders who are really looking to pull off an old scam. In this scam, the lender promise an easy loan, and will deposit a check in your bank account. The scammers will then demand you to buy loan insurance before the check even clears. However, the check never clears as it’s a fake, leaving the victim responsible for the check’s amount to their bank. These phony lenders usually promise you won’t have to undergo a credit check. This should be your red flag, as all legitimate lenders will have you undergo a credit check. Also, no one seeking a loan should respond to unsolicited offers they may receive through text or email.

  ***

  Lastly, the Better Business Bureau of Tulsa is warning their residents about a text messaging scam that threatens to lock their phone. Consumers there have been getting texts that appear to come from their cell phone providers telling them that their phone will be locked if they don’t make a payment. The text also contains a link that should never be clicked on. The link will either inject malware into your phone or it will ask you for your financial information. If you receive one of these texts or one like it, call the customer service number that appears on your bill or on the provider’s website.

  ***

  Please keep in mind that scams like this aren’t confined to the area where they are being reported on in the news. They could just as easily be happening in your area.

   
• 

  Geebo 8:00 am on August 11, 2021 Permalink | Reply
  Tags: advance fee scam ( 42 ), credit repair ( 2 ), Eviction ( 3 ), eviction moratorium ( 2 ), loan scam, real estate ( 117 ), Scams ( 1,219 )   

  In danger of being evicted makes a prime target for scammers 

  

  By Greg Collier

  The Federal Government has extended the eviction moratorium to October 3rd. Not only does this give tenants extra time to try to improve their situation, but it also gives scammers more opportunities to find more victims. Scammers are always looking for victims who are in a desperate situation, and there’s no situation more desperate than the possibility of losing your home. To scammers, it doesn’t matter if you only have a little money to your name. They’ll try to take it anyway. And now they’re trying to take it from those trying to keep a roof over their heads.

  The Better Business Bureau has issued a warning to those looking for any kind of rental assistance. Too many scammers are out there now, offering services that are too good to be true. The scams run from phony credit repair services to ‘guaranteed’ loan services. While there are legitimate credit repair services, consumers need to keep an eye out for repair services that make promises they can’t keep, like removing a bankruptcy from your credit report. And no loan is ever guaranteed. Those who are offering such loans will probably ask for an upfront or advance fee and not provide any service.

  There are also government grant scams to look out for. While there are government grants that provide financial assistance to some tenants, the government will never reach out to you. And again, the grant scammers will ask for an advance payment disguised as processing fees. Real grants require no such fee.

  However, the BBB has been warning about one particular scam lately. In it, the scammers call you to tell you that your loan is approved. They’re hoping that you’ve applied for at least one loan to help improve your situation. The scammers will then say that before they can release the loan money, you need to increase your credit score. All you need to do is wait for $1000 to show up in your bank account then once you send the $1000 back, your credit score will be improved enough to get the loan. The money deposited into your account is fraudulent and if you send it to the scammers before your bank catches the fraudulent transaction, you’re not only responsible for the $1000 but any overdraft fees as well.

   
• 

  Geebo 8:00 am on October 2, 2020 Permalink | Reply
  Tags: life insurance scam ( 2 ), loan ( 4 ), loan scam, medicare ( 15 ), Scams ( 1,219 )   

  Medicare, lost millionaires, and a loan scam 

  

  It’s time for us to bring you another trio of scams that are happening around the country. Even though these scams may not be in your area, they could be soon.

  In North Dakota, authorities there are warning of a Medicare scam that’s been plaguing senior residents of the state. Scammers are said to have been calling residents claiming that they need to be issued new plastic Medicare cards to replace the paper ones. All the resident needs to do is to verify their Medicare number. In reality, the scammers could potentially file numerous fraudulent medical claims using the victim’s Medicare number. Always keep in mind that a government agency will never ask you for information that they should already have.

  In one county in Kansas, the local sheriff is warning residents about a scam that sounds straight out of an old sitcom. Residents in Brown County have received letters in the mail saying that a relative has died and left them a life insurance payout worth millions of dollars. The problem with this scam is that scammers seemingly know the actual names of distant relatives of the residents who have recently passed away. This adds an unfortunate air of legitimacy to the scam. However, the legitimate-looking letter only provides an email contact for someone to process the ‘paperwork’. We imagine that there would be some form of payment requested to process the phony insurance policy.

  Officials in Georgia are warning residents there about a phone scam that’s offering loans in value up to $30,000. With this scam, the ‘loan’ comes at the cost of fake processing fees that could reach $1000 themselves. The scammers are asking for these payments in cashier’s check, wire transfer, or prepaid debit card. These are all forms of payment that could be considered untraceable once the money is spent. Officials would like to remind residents that legitimate lenders make their money through interest once the loan is paid back and not through outlandish fees.