4 Critical Steps to Avoid Lending Scams

Heading into the holiday season you want to be aware of online scams. It is sad how many prospective loan applicants that come through our doors have been scammed by an online loan company. They have sent their money to a company they have never heard of, only to see it disappear. Knowing how to identify an online lending scam and how to avoid them is a good way to protect yourself.

Online scams

Here Are 4 Steps You Can Take To Avoid Lending Scams Online

1. Is the company I am dealing with requesting an up-front fee for an unsecured loan?

Never send funds via Western Union or any other method to a company to cover “Fees” before receiving a loan. Reputable lenders will not ask you for any fees, whatsoever, throughout the loan application process or even after you have been approved. With the exception of NSF fees that are charged for insufficient funds, we are a no fee service!

2. Is the company I am dealing with in Canada or another country?

Companies with only foreign operations cannot be held accountable the same as a Canadian company. Contacting local authorities will get you virtually nowhere if you are trying to chase your funds from another country. If you send your money out of the country, it will also be virtually impossible for you to get it back.

However, if you send your funds to another Canadian bank account and get scammed you may have certain remedies through your local authorities, through your banking institution, or other means.

3. Is the company registered with a Business accreditation service?

Companies can register with BBB after 1 year, so you may not find a new company (like urLoan™) on a site like BBB quite yet (expect us to be on there in January 2014). However, there are other ways to verify the company you are dealing with. For example, you can verify urLoan through D&B at https://www.dnbexpress.ca/search_results.asp

Just type in urLoan or our corporate name CreditLoans Canada Financing Inc. Most online scams are set up for a brief period of time, and virtually have no external accreditation. Always do your homework before giving your personal information out.

4. Other ways to verify a Company:

a. Perform a corporate search – CreditLoans Canada Financing Inc. is a BC registered company and can be found by searching the BC corporate registry. We are also extra-provincially registered in several other provinces for various reasons.

b. Check for licenses – This typically applies to Payday lenders and deposit taking institutions such as your bank. urLoan™ is neither. Due to various consumer protection legislation in each province, Payday lenders are always required to register with the respective province and federal guidelines monitor banks.

c. Check social media and review sites – Look for reviews, other social media, and see what the public is saying first.  If no one has any idea who the company is it’s highly unlikely the Company you are dealing with is legitimate.

d. Pick up the phone and call before giving out your personal information! – You would be surprised how many people just fill out their information online without doing their due diligence in advance. Pick up the phone and call the Company first, ask questions about the Company and understand who you are dealing with before you give them your personal information.

urLoan™ is all about helping Canadians from coast to coast improve their financial knowledge. When you seek a term loan from urLoan™, we want you to understand its impact on your finances and monthly budget, and ultimately use it as a tool to improve your financial knowledge.

Call us to explore your options: 1-866-723-5626