At one time or another, everyone will face a financial hardship. Finding a way to dig your way out of a financial hole can be a lot easier said than done. One of the most used financial tools for people who are strapped for cash is a payday loan. Due to the fact that these loans are so common, many scammers have started using them as the basis for some of their cons.
The payday loan phone scam is becoming a common problem all across the country with more and more cases reported each day. In order to avoid this scam, you will need to take advantage of the following information.
How the Payday Loan Phone Scam Works
Your phone rings and on the other end of the line is a person claiming to be the attorney for a payday loan company. They will try to convince you that there is an outstanding payday loan in your name that needs to be paid immediately.
Generally, the caller will want to get your name, date of birth and a credit card to "verify" you are who you say you are. If you object to giving them this information, the caller may begin to threaten you with jail time or even higher penalties. While this can be a very nerve-wracking situation, you need to avoid giving any of this information out over the phone. If you do give the caller this information, you put yourself at risk of being ripped off and having your identity stolen.
How to Keep Scammers at Bay
The main objective that you should have when it comes to the payday loan scam is how to avoid them. There are a number of payday loan companies that will call or even email you to offer a loan. You should avoid doing any type of financial transaction like this over the phone or on the internet.
Usually, there will be a variety of different payday loan establishments in your area. By going to a physical location to get one of these loans, you will be able to avoid having your information sold to a third party online, or worse stolen. Before using a particular payday loan provider, you will need to research them so you can verify their legitimacy.
Reporting Suspicious Activity
The best way to protect yourself and your loved ones from falling victim to payday loans is by reporting phone scams to the proper authorities. Since this scam falls under the category of financial fraud, you will need to report this activity to the Federal Trade Commission. You can also use the power of CallerSmart's community phone book to alert people by leaving your feedback on the number that tried to scam you. By simply leaving a comment you can help prevent a person from potentially getting scammed.
You can use CallerSmart's cell phone number lookup app to identify unknown calls and report payday phone scams. If you don't have an iPhone or iPad, you can still run a phone number trace on suspicious numbers and leave your feedback on our website.