News & Resources

New scam targets short term loan customers

Nov 01, 2012 Quinn Thomas

New scam targets short term loan customers
Short term loans are just one form of short term lending that was wholeheartedly embraced by many individuals who were adversely affected by the Great Recession. Many of those who were lucky enough to hold onto their jobs were stretched thin and had trouble making ends meet, particularly  when faced with an emergency expense.
 Though the United States is pulling itself out of the dismal economic situation, many people still rely on these types of loans if they feel the financial pressure. Because it's still a frequently used sector, criminals are looking to cash in on the current strength of the short term lending industry. Consumers and short term lenders alike should take note that there is a new scam running rampant around the nation. Companies may want to notify clients about the situation and continue to follow best practices to distance themselves from the thieves. Done right, educating people could actually result in more revenue due to loyalty. FBI's Compliant Center becomes involved
According to the Better Business Bureau, there has been a rise in short term loan-related scams recently. Specifically, many consumers have been receiving calls from individuals identifying as a representative of a short term loan company, debt collector or law enforcement agent and demand repayment, the news provider reported. These criminals will continue badgering individuals at home, work or through friends or relatives, while providing personal information about the alleged debtor that makes them appear to be legitimate. Now, the BBB detailed, the fake collectors are sending out emails inquiring about missing money as well, using headings and templates from federal agencies. What real lenders can do
One of the best ways legitimate short term lenders can help is to publish information about the scams on their website. Many of these companies feature articles about best practices, regulations and other industry-related news on their corporate pages, so revealing data about this situation will also help to inform those who may be affected. Another possibility is to tell borrowers while they're finalizing the transfer in the store about the ways they will be contacted if they happen to default on their loans. They should know that while debt collection agents may be contacted, local law enforcement often doesn't become involved unless lawsuits follow. Company owners might also consider informing customers that they should contact the FBI's Internet Crime Complaint Center if they think they have become targeted. Catching the criminals would not only be good for innocent individuals, but the industry as a whole, because otherwise, the reputation of the sector could be irreparably damaged.