Jan 15

Don’t Get Fooled By These Scams When Applying For a Personal Loan

indexThere is a very good saying “when something sounds too good to be true, it is too good to be true” and believe me that is true. Here are some tips on how to recognize some scrupulous financial lenders whose only interest is to scam you out of your money.

What to look out for

You are receiving an sms or email offering you a ”guaranteed loan” from R1,000 to R100000 or more with an annum interest rate of as low as 3 or 4% per annum with up to 6 years or more to repay.. Mostly this is a trick to make you fall for their lies.

All valid, registered financial service providers, their brokers and agents falls under the government laws and need to abide with the rules and regulations of the NCR as well.

Think about this: If they are legit how on earth can they themselves make money by charging 3 or 4% per year? Where does the money come from to pay their staff? It really does not make sense, does it?

Charging of upfront fees

Once again they are clever, they know they cannot charge you for just completing an application form so the charge you so called “legal or attorney fees” for drawing up the documents and contract. They now ask you to deposit the money into their banking account thereafter the money will be transferred into your account. They may tell you that amount will be refunded to you at the end of the contract when you made your last installment. In most cases these type of statements are just not true. Sometimes the even ask you to deposit a second amount as well
Know who you are dealing with

These scam companies usually do not excist at all, they mostly are a bunch of individuals getting rich by their schemes they pull on the innocent consumer. Make SURE who you are dealing with. These vultures are using the names of reputable companies they find on google and then use that name when they send out their sms or emails to the clients. Their documents they send to you looks very legit and professional.

Should you have a bad credit record and you get these kind of offers be very skeptical, with a not so good credit history you usually pay higher interest rate than the people who are not listed. Rather be safe than sorry.