A payday loan is the ideal solution if you are in urgent need of money before your next payday. It could be for an urgent gift purchase, to pay an overdue bill or to fix a broken car. Whatever it is, a payday loan is the quickest short-term solution. And you can have the funds in your account in a matter of minutes.
But the payday loan industry has been controversial for various reasons. And this has been made worse by scam companies that con desperate borrowers. Many of them have shiny websites and friendly staff who make you feel you are in the right place. But all they're cared about is your money and not in solving your problem.
Because all payday loan lenders are now online, doing quick research on any lender has become a lot easier. And you can know in minutes if you're looking at a legitimate or scam lender by checking out the following factors:
Online Reviews
The first step to take when looking for a legitimate payday loan lender is to read customer reviews. Reviews will tell you if a company actually exists and how long it's been in business. And sometimes many negative reviews are not always a bad thing; and that's because it's usually people who have had a bad experience who leave feedback.
But reviews overall will tell you if a company provides a good service or not. And this will be a guide to what you most likely will face when you sign up with them.
Lender Age
A good sign a lender is legitimate or not is the length of time they've been in business. You can easily find this out by checking with Companies House, on their website, the domain age on Whois and many other areas. If you are still not sure, then you should phone their offices and even make a visit if possible.
Privacy Policy
The lender should have a strict privacy policy and its URL should be secure. It should begin with https and not just http. If the "s " is missing then this means the site is not secure and your personal information could be at risk.
Fees and Charges
The website should state clearly the lender charges and fees and what you'll repay. You should be able to easily find their terms relating to late payments and fees for rolling over a loan. You should also be able to find this in an FAQ section and in the Terms.
The Agreement
The agreement you sign, whether online or offline, should be clear and understandable. It should clearly include the loan amount, interest rate, loan fees and any other applicable fees. The due date should also appear on the credit agreement and details of what should happen if you fail to meet the due date.
Office of Fair Trading (OFT)
The payday loan lender should be registered with the Office of Fair Trading. And you should check their website for their Consumer Credit Number which should be clearly displayed on the homepage.
Summary
There are many other factors to check to make sure you don't fall victim to a scam payday loan lender. You can find these online and by thoroughly checking the website, you can save yourself a lot of trouble and sign up with a legitimate lender.
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