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How to Select Authentic Payday Loan Companies and Avoid Scams

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Companies offering payday loans are valid businesses. Their operations are guided by regulations and they are closely monitored by law enforcers. However still, from time to time, you will come across bad press about these cash advances. That is mainly because of poor and unethical trade practices by a few firms and lenders. The fact is that, most companies offering these loans are honest entities, carrying out lawful businesses. But there will always be a few that are best avoided. And this is true for any kind of business in the world.

It is thus important to know how to stay away from payday loan scams promoted by these companies. Do not become a victim of a scam or fraud. Learn about the guidelines issued by the FTC or the Federal Trade Commission on how to avoid becoming a victim.

Don’t Entertain Unsolicited Loan Offers

Many of us receive loan offers from time to time – these are your unsolicited offers. Payday loans are sometimes marketed over the internet. Many companies reach out to people offering them loans, especially through SPAM emails, at attractive terms. Fortunately most email service providers mark these emails as SPAM and warn the readers that these emails may not have come from a credible source, so they must be careful opening them. Just don’t entertain such offers. Stay clear. Analyze your financial situation and determine yourself whether you need the money or not. Do not let them guide you. It should be you who should contact them instead of the other way round. Reach out to the company of your choice and always read the terms and conditions carefully before signing anything. Call them and talk to them if you are not sure.

Is the Lending Company CFSA Sealed?

CFSA or the Community Financial Services Association was set up to regulate the payday loan industry and for protecting the consumers. The association deals with every aspect of the payday lending business. It monitors the operations of individual businesses in the United States. The association audits performances and offers certifications to valid operators. So before you finally agree to take the payday loan, do always ensure that the company is certified by the CFSA. You can do this by checking the CFSA seal. When you do this, you can be sure that the operator is a valid one, carrying out legal business. It naturally reduces your risks dramatically. All lenders working with us are registered as legal lenders to do business in USA, with their state governments and are monitored by regulative agencies including CFSA.

Legitimate Lending Companies Won’t Ask For Upfront Payments

Sadly, there are some payday lending companies that ask for an upfront fee for approving the loan and crediting the amount to their customer’s bank account. There are also a few providers who ask credit report fees. Avoid these businesses. No legitimate payday loan company will ask for these fees. In fact, you should know that payday loan companies don’t check credit reports before approving the loan. All you have to do is just fill out a small form, where you must submit some basic information such as your name, address, contact details, bank account details, and the amount you want to borrow. You must also furnish proof of your regular income. The fee is typically deducted from the sum you borrow once everything is taken care of.

Check the Physical Address to Verify the Lender

It’s true that not all online operators are scams, however having said this, there are still many online payday lenders often offer falsified information to justify their authenticity. Often, people who need the money desperately will become a victim, because they will commit themselves without really thinking. They can land up in a bigger mess.

Be careful. Search for a reliable payday loan firm. Is there a physical address mentioned in the website? Find it if possible. Is there a phone number? Call up to check whether you can speak with a person. Authentic payday companies will have such information posted in their website. They will make it easy for people to contact them.

Here is our phone number where you can speak with our customer service executive on all business days:

855-786-0571 (Toll Free)

Also our physical address is mentioned in our site in ALL the pages.

Search for Red Flags

When you are dealing with personal information and finance, it’s essential to make sure that the lending company is legitimate. This can be difficult sometimes, but not impossible. Look for obvious red flags to locate the fake and the real ones. The scams will give very little or no information about themselves. These scams don’t have the authority to ask for bank information details.

Do Your Homework – Verify Authenticity of a Payday Loan Company

Do your research well when you are dealing with a payday lending company. You need to know who you are dealing with. To verify, you can check with the BBB or Better Business Bureau. There are financial regulators in all the American states where you can check as well. You can get a good understanding from there. There are some other ways to find out if a business is authentic or not as well.

  • Look for spelling mistakes if you have received information in an email or through ordinary mail. Too many spelling mistakes is a guarantee that it is SPAM. Just Delete.
  • Genuine lenders will often have information about you. Get alarmed if the information in email or general mail is addressed to the general audience. The lending company must also know who the receiver of the communication is.
  • Stay wary of any operator that issues any kind of time limit, such as a special offer that is valid for only the next 72 hours. Nothing works immediately. You should take time to decide and go through the terms before agreeing. It is always suspicious when you are told to hit a deadline.
  • How are you receiving the communication? Loan offer communications through text messages (SMS) is highly irrational. Such details should be dealt with through email or paper. That is the right way.

Avoid Offers That Are Too Good To Be True

In real world these things do not work. There are plenty of offers online that promise exactly what you need, and that too, for minimal requirements. There are many offers that sound too good. Most of these offers are in all likely hood fake ones. They are out to scam their customers. Don’t take a chance. For instance, you may receive offers of lower interest rate or 12 hour credit to your bank account. It usually takes between 48 and 72 hours for the money to be credited. That’s because, the lender will need to ensure that you have a steady source of income, and a valid bank account. The verification takes time – so the delay in depositing cash in your bank account. The interest rate also must be rational.

Payday lending is a valid and authentic business. There are agencies that regulate and moderate their operations. There are plenty of good businesses, but there are fake ones too, which are bringing down the reputation of the cash advance operations.

You can certainly get the cash advance you need, and you can get it quickly too. But don’t be rash. Take some basic precautions. Do your research, check, read, analyze, and think before you finally agree. This is the only way to avoid getting scammed and getting the money you need.

Were you ever scammed by a payday loan company? If yes please let us know in the comments section below.


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