Beware Of These Personal Loan Scams In Singapore
When people desperately want to get money urgently, and they cannot do so through legal lending institutions. They usually will borrow from other sources. However, before deciding on borrowing from these sources. You need to be wary of some types of loans which could get you in even bigger debts.
Guaranteed Online Loans
They are also known as payday loans. These are often offered as short-term loans. Any guarantees that promise to get you loans before assessing the necessary information may be a scam. An excellent way to confirm that a lender is legitimate is to carry out your research. Be sure to learn more about a lender from reliable sources.
Fake “Legal” Moneylenders
These lenders will act as licensed parties. They will use licensed numbers issued by MinLaw. Also, they will post adverts by using the names of licensed lenders. Before choosing to a loan from these moneylenders. Confirm that their information (such as hotline and website). Often, the actual lenders are unaware of these imposters.
Harassment and threats could come before getting the loan, or soon after you get loans from these lenders. Legal lenders will not pressure borrowers to make the deal. As they know, ultimately it is a personal decision by a borrower. The illegal moneylenders are often bold. Thus they take advantage of scare tactics on borrowers. This makes borrowers vulnerable therefore easy targets.
Such lenders often will send several emails and even call you every once in a while. Legal moneylenders such as those found on Loan Advisor never use these attempts for them to get potential customers. This is because they will not wish to disturb borrowers unnecessarily. Thus it is best that you ignore such spams or you could report these to relevant authorities in Singapore.
Asking for Upfront Fees
This kind of scams normally requires a borrower to pay upfront fees before they offer you the loan. These lenders might justify these fees by claiming it to be a processing fee included for all borrowers. They might even use it as security needed because of your poor credit. They will then ask that you give your account information to them. They could also ask you to do a transfer online to them, and they will in return provide you with the promised loan. Soon after you make the transfer, this lender might go away with the money.
Do not get surprised when the lender cuts off contact with you. Remember that – authorized lenders never ask borrowers to pay a fee before granting them the loan.
Predatory Lending – Loan Sharks
The loan shark type of lenders is usually called “Ah Long.” They use deceptive, unfair, or even fraudulent activities to lure borrowers who desperately need cash. This type of lenders usually target Singaporeans who do not qualify for loans by legitimate sources. This could be like banks, because of them having a poor credit score. As a way to get means of contacting the potential borrower. They might result in advertising aggressively using advertisements on online platforms and public transport. It is advisable that borrowers do not deal with the loan sharks.