One more payday loan scam reported from an Iowan woman hoping to keep others from falling into the same or similar trap.The scam originated in India. The victim, located in Iowa, was a woman who had applied for payday loans in the past, but had not done so recently.
The scam was initiated by phone, a so-called payday lender calling out of the blue offering a large amount of money. The woman was offered over $3000 for a small refundable insurance cost of $330. Being in a vulnerable financial state, the woman decided to give it a go. She was told that once her payment was received, she would begin receiving $330 each month over the next ten months. This money would be a blessing for many who are struggling to make ends meet. This is the idea behind the scammers. Keep calling phone numbers until you reach people her are in a vulnerable situation.
The lady went to send her money through a money wiring service. Her receipt showed that the payment was received in India. Red flags went up and she went to the police. Because the scam was reported before telling the offshore company that the money was sent, the money wiring service was told of the ploy and all money was returned to the rightful owner.
This story has a happy ending, but many people in need of quick money have not had such happy results. Scam artists call from all over the world and can make their phone number look like a local call. It is not just payday loan lenders who are being misrepresented. This same woman from Iowa get other phone calls, what appeared to be her own cell number, from people offering her federal grants which she supposedly had qualified for. People who are in desperate need for cash are being targeted.Honest direct payday loan lenders will not initiate your possible loan.
Unless you fill out an application form for a payday loan, you will not receive contact from a payday loan lender. When you do submit your information, you will immediately receive an email and some companies will even call if you are approved for a loan.There are many offshore companies who are taking advantage of those who are financially struggling. Legitimate companies who will loan money do not have to follow state regulations because of the company's offshore location. Other countries do not need to follow loan caps or limited interest rates. Illegal collections practices are tough to prosecute when they are coming from another country.
There are honest direct on line payday lenders out there who will offer your short-term loans for fees and interest which do comply with state legislation. Avoid offers which sound to good to be true or companies willing to lend amounts greater than other companies. Do your research when applying for payday loans and think twice about companies which call out of the blue offering you easy money.
If you do think you have been caught in a scam, call your local authorities at once. If the company has been given bank account information you will want to contact your banker as soon as possible to avoid unlawful withdrawals from the account.