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September 24 2013


Recent Payday Loan Scandals In The UK

The payday loan industry is probably one of the easiest industries for online scammers to infiltrate. The main reason for this is because people that are looking for payday loans on the internet tend to be quite desperate for money because of an unforeseen emergency or crisis and don't have too many financial options. Add to this the fact that they don't have too much time on their hands and you get yourself the perfect playing field for an online scammer. 

If you too are searching the internet for an online payday loan it is very important that you keep this below list of 5 points in your mind at all times or else you too may fall victim to a scam: 

1. The first thing you have to check about any payday loan website is whether or not it carries the seal of the OFT (Office of Fair Trading). In order for a company to lend money in the UK, it is essential that they are certified by the OFT. This at least guarantees a certain degree of protection. 

2. Don't think that you can increase your chances of getting a payday loan approved but submitting applications to multiple websites. Most of these websites charge you a fee each time you apply and no one would like to suddenly find out that they are being charged a fee for all the applications they submitted even though only one or maybe none of them were approved. 

3. Be wary of any third party lending sites. These websites basically take your application & then go shopping with it to other lending firms. This may sound ideal to you in the beginning, but unless their policy states that they will keep you informed of the status of your application at every step of the process, you really have no idea what they are doing with your information and who they are supplying it to. They could even be trying to borrow money for you from a bank that is located outside the United Kingdom. They could also be signing up for countless free trials which will start charging your bank account the moment the free period has expired. Stick to verified and  reliable sites, like Swift Money.

4. Try and find out where the payday lender running the website operates from and pay them a visit. Any legitimate lender will have no problem disclosing their contact details. On the other hand, if the website has no mention of a physical address for the lending company and only allows you to contact them via an online form or email address, you should figure out that there is something fishy and move on. 

The only problem is that you will never really be sure whether or not you are being scammed. The only way you can protect yourself against such scams is to read the terms and conditions carefully before applying and to ensure you repay the loan before the due date is passed.

Reposted fromomgunman omgunman viaDshene Dshene
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