Several New Lending Scams affecting Canadians

scam alert

The scams have many commonalities between them, but some of the biggest red flags include the fact that there is no contact information for the company to be reached directly and in almost all cases, they utilize a web form to gather your information, then reach out to you. So how do you do if a loan company is legit?

Up-Front Payment

We encourage you to be fraud aware, do not send up front fees to these companies.  In all cases, they are asking for either a security deposit or an insurance deposit, due to your credit.  And they give you the option to send money to them via Western Union or another online method that cannot be tracked down. Two points here, one, if you send money to a Western Union account, it’s almost always going to the United States or some other country outside of Canada, which means you cannot get your funds back.  Secondly, any up front fee to obtain an unsecured loan in Canada is ILLEGAL and has been for many years.

Minimal Gateways

At UrLoan, we strive to make the lending process as simple as possible for you. However, there are important checks and informational verifications, such as your credit score and proof of identity, that need to be assessed in order for our experts to find a loan that works best for you. Some online lenders claim to need no such verification: your credit, effectively, does not matter. While many borrowers might find statements like this to be enticing, consider the realistic expectation of a lender whose sole criterion is access to your banking information.

Brick and Mortar

When doing your research about a lender, look up their location in the real world. How can you contact a human being, and what is that experience like? Does the company operate as an independent or a franchise? Are they listed on the Better Business Bureau website? Did they extend the offer to contact you and provide little in the way of return contact information? All of these are potential warnings.

Marketing Professionalism

Consider the tone, style and correctness of the marketing copy used on a lender’s website or email solicitation. Is it accurately spelled? Are there strange tonal inconsistencies, or is excessive jargon prevalent? How about the style-sheet used for the website? Does it look current and professionally designed? Indications to the contrary may suggest that a scam is afoot.

Hopefully, with these tips aiding your awareness, you can avoid the pitfalls of unscrupulous lenders looking to take advantage of your financial needs! Be smart!