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Beware Of Short-Term Lending Telephone Fraud

by Jim ONeil on May 22, 2012

in Personal Finance Tips

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Lending Stream, an online UK provider of payday loans and other short-term financing, is warning consumers about telephone callers impersonating loan company representatives. The company recently received reports of telephone fraud within the industry.

Tricksters are calling UK families at random and posing as staff of legitimate UK lending companies. After offering loans of as much as £5,000, they request banking information to supposedly “qualify” consumers for the financing.

Consumers can protect themselves from becoming victims of this fraud by following several recommendations proposed by Lending Stream. Most UK providers of payday loans do not call people without being solicited. Therefore, consumers who receive such phone calls should be on alert. If a deal being offered sounds too good to be true, it is probably a scam. Consumers should instead apply for no credit check loans online, using a website for a reputable loan company.

People should never provide personal information including banking details to an unsolicited caller without verifying the identity of a caller. If something seems suspicious, they should hang up the phone, use a phone book or the Web to find the telephone number for the loan company, and call the company to inquire whether a representative recently contacted them. Even if the company did place the call, a legitimate organization will not require advance payment using vouchers like Ukash, so firms that do should be avoided.

The harsh reality is that scammers are becoming shrewder with their tactics. Unknowing consumers who are already pressed for cash are having their money and even their identities stolen. To avoid becoming the next victim, a person must be on alert when contacted via telephone regarding supposed cheap loans. Credentials should be checked and if doubt exists about the legitimacy of the company, it is better to refuse the offer and apply online to a legitimate lender.

Consumers have their choice of reputable providers of no credit check loans when they look online. Some websites will even match prospective borrowers with various lenders, allowing people to find the best deal without making much effort. To qualify for a loan, the individual must be UK citizen at least 18 years of age with steady income and an active bank account.

Even providers of payday loans do not accept all applicants. Some lenders are being more restrictive to avoid ending up with high rates of default. Consumers should be honest when completing loan applications because any missing or false information could result in rejection. Once they are approved, borrowers should try to repay the money within the initial term to avoid high loans APR.

The National Fraud Authority recently published its Annual Fraud Indicator report, which revealed that telephone banking fraud increased 31 percent for 2012, representing a £16.7 million loss. Consumers who suspect that they are telephone fraud or identity theft victims or who have received a loan offer that they think may be fraudulent should contact Action Fraud. The National Fraud Authority, a UK government agency involved in the war against fraud, runs this organization.

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