How to Identify Legitimate Payday Loan Companies

Borrowing money from a friend or family can be hectic. It is why most people opt for online money lending companies. With the advent of technology it has become easier to get money direct into your account without filling a lot of paper work. However, the platform has also created an easy way for fraudsters to take advantage of the unsuspecting public.

Imagine an online lending company asking for money in order to complete your registration and because you are pressed for cash you give them. This is just one way you can tell whether you are being conned. Online money lending companies have flocked the internet and thus, it is your responsibility to find out their legitimacy before proceeding with any transaction.

Search for the Company’s Physical Address

A legitimate company like Speedy Cash should at least have a physical address. If the company has several branches you can look for their head office address. Once you have their physical address you can plug into Google and trace their location. Fraudsters who do not have a physical address do so to avoid being traced. Therefore, if you do not find their address do not proceed to carry out any business with them.

Check for Customer Reviews to Ascertain Online Presence

Online presence of a company speaks volumes about the legitimacy of a company. It may not be much but it’s a step to determining whether the company is indeed in existence. This can be done by first, checking whether the company has an active website where its clients comment and give their feedback. Furthermore, check for it on websites such as, crunch base or owler if it’s a newly existent company. Pay attention to the client’s comments and make your judgment whether to proceed with the transaction.

Run the Name of the company through Better Business Bureau

Online presence is not solid evidence that a company is not predatory. Therefore, before settling on it you should run it through better Business Bureau website to know whether it is okay to work with the lender. The grading on the website is from A+ to F accompanied with grading reasons. Nonetheless, you can read the reviews left by clients on the website. If you change your mind about working with them you can still go through the same website to find a lender who is more genuine.

Put your Comfort First

Most lending companies are not desperate in as much as they are looking for clients. Additionally, they do not solicit their services. They use internet or other media adverts to get clients. Hence, if you receive a direct email, call or SMS those are probably scammers. Therefore, if you find a lender that is too aggressive or overbearing that should be a red flag. It is a sign that they are trying to manipulate you into making a decision. Thus, if you feel like you are going to make the decision under duress, step back and rethink whether it’s the best decision or you are better off looking for another company.

Check with the Attorney General’s Office

If everything checks out and you are almost convinced that the company is legitimate you can check with the attorney general to finalize on your investigation. Lenders are required to register with state agencies before carrying out any business. Hence, if the attorney general’s office confirms that the business is not registered stop any ongoing registration or process that is going on.

No Interest in Previous Payment History.

Most lenders have interest in your payment history to determine whether they can trust you with the current loan. They even make a point of getting your credit report from the bureaus such as Transunion and Experian. On the contrary, fraudsters are not interested in your diligent repayment.  They actually   like people who repay late so that you can incur high interest rates and penalties. There are bad credit lenders who do not check for your repayment history. However, they check for other things such as your income flow, education background and employment status. Therefore, if a credit company does not entirely check on anything then it raises eyebrows and you should ask questions.

Demand for Debit Card

Most people fall into this trap since they are told the card will pay for insurance or will be used for loan security. Lending companies often deduct the charges from the applied loan. Additionally, the debit card is untraceable therefore; you will not be able to retrieve your money if you give it willingly to the fraudsters. Your bank will hardly resolve this problem.

The Lenders Website Should be secured

The last thing you want is your details being shared with a third party. Thus, when you check into a company’s website, what you see and what you do not see are both important. Therefore, to determine privacy watch out for a small padlock at the top of the company’s website. This symbol is an indication that the site is protected from any data thieves. A site that lacks this feature probably does not care about your privacy and can submit your information to a third party. Data protection is at the core of every state’s laws. Hence, every company should put the necessary security measures to cushion their clients from any data or privacy breach.

Summing Up

You should carry out an extensive research before getting into any contract with an online lending company. The offers may be too good, however, do not let your desperation to get fast cash lead you to making rational decisions that may cost you in the end. There are good lenders and bad lenders just like in other businesses. Hence, it is not okay to give a blanket opinion that all payday loan companies are scammers yet there are legit and helpful ones. Therefore, if you are in a fix and need a quick soft loan, looking up for the legitimacy of a company is a good place to start