You can never predict how low scammers can go to rob you of your money. They don’t spare anyone. Whether you are a young person or an elderly trying to live a comfortable post-retirement life, they don’t care. They don’t care even if you are a small business or a large enterprise. So, just because you don’t have a lot of money in your bank account does not mean you will not be scammed. In fact, payday loan scams have been designed to deprive poor people of whatever money they are left with. What does this finance scam look like? Let’s discuss the two types and the way to thwart them.
Payday Loan Scam – The Nice One
The first form of a payday loan is the nice one. The impact on your budget and finance is the same irrespective of how nice or ugly the scam is. However, when it comes to a finance scam, niceness is a better weapon than intimidation. People do not bother checking things out and investigating when they are talking to someone who sounds friendly and helpful. That’s exactly what happens in this type of scam. You get a call from someone who tells you that they can help you with your debts. If nothing, they will tell you that they can help you repay a small loan that you owe to some lender.
Well, if you are already stuck with a loan and can’t find a way to pay it back, you will fall for this trap easily. They provide you with some basic information about you to make you think that they are legitimate people. That’s not the case though. The worst part is that they will accept money from you in any form. For example, they might ask you to buy an iTunes card for them if nothing else works.
Payday Loan Scam – The Intimidating One
This is where things get dirty. In this type of scam, the scammers are ruthless. They don’t care about your feelings and they are not even in the mood to build a rapport before they scam you. They just want you to give them money as fast as possible. How do they do that? They resort to intimidation in its purest form. They will talk to you in an angry manner. How do they manage to take such a high position while talking to you on the phone? The first thing they do is tell you that you owe them money. Yes, they try to convince you that you got a loan from them at some point.
After that, they tell you that they will call the police on you. To make things even more intimidating, they sometimes tell you that they are the lawyer representing the company that you got the loan from. Once they have threatened you enough, they ask you to pay the money back before you get in trouble. If you show any signs of fear, you will fall for this trap.
How Do They Get Your Information?
You see, you have the GDPR and many other regulations trying to protect the information of the people when they visit websites online. These regulations and standards are a perfect example of necessity being the mother of invention. They are there because such regulations were needed. When you provide your information online, you unknowingly give the company the permission to share your information with other companies. In addition to that, you may not know that many online companies that promise to provide you with loans are not the actual companies.
They are the middlemen, or say brokers, who help you get in touch with the right lender. These brokers collect your information and sell it to people who pay them for leads. This makes them money and puts you in trouble because you are then contacted by people with bad intent.
How to Protect Your Money from These Scams
A finance scam, as damaging as it may sound, is nothing more than a castle made out of cards – you don’t need any strategies of advanced knowledge to make them collapse. For example, when you are contacted in the email by a scammer, you just need to trash that email. After that, you can choose the option to have the sender of that email in the spammers’ list. Even a free email service will put that email address where it belongs and you will never be bothered by it again. You can do the same with a scam that is perpetrated on the phone.
When you receive a call from someone telling you that you owe them some loan, you just don’t trust them. If you have not taken out a loan, you don’t owe anyone any money. You can always take your time on the phone and look at the list of companies that you have taken out loans from if you want to verify. If they are not in the list, you just don’t talk to them. Do not try to argue with them because it opens doors for them to convince you in some way that they are legitimate. Just hang up the call on them and that should be it.
You must not forget the fact that a finance scam is usually successful when the person on the other side is not aware of the scam or too innocent to understand that evil people live on this planet. Now that you know about these payday loan scams, you should try to stay away from them as much as possible. You are also recommended to never fall in a situation in which you need a payday loan. A payday loan is never going to be a good transaction in your favor. It solves a very short-term financial matter for you but costs you a fortune. In many cases, it is designed in a way that you can’t repay it with your existing income. So, think many times before you apply for a payday loan, and don’t fall for any scams.