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Warning Signs of an Online Loan Scam

Online-Loan-Scam

If you are looking to borrow money, either for a mortgage or other purchase, you may have considered filing your application online. There’s no shortage of websites offering you the opportunity to apply online and you can often get “approval” within moments. Many are legitimate, but, as will most things, there are many fraudsters lurking in the shadows, looking to separate you from your money. Here are some of the warning signs that an online provider of capital may not be legitimate:

No Credit—No Problem!!

If the lender assures you that you’ll qualify, regardless of your credit history, don’t take the hook. In the best case scenario, you may actually be able to borrow money, but you’ll probably pay exorbitant rates of interest. Some “payday” loans carry interest rates in excess of 300% compounded annually. In the worst case scenario, you could end up giving the fraudster unlimited access to your bank account.

Application Fees

Processing fees are not unusual, but legitimate lenders can tell you whether you’ll qualify without charging a fee. You shouldn’t have to pay any type of fee unless your application has been approved and you are moving forward with the processing of the loan. Don’t ever wire funds or make payment to a specific person. That’s not how bona fide lenders operate.

Hidden Fees

All potential fees should be disclosed up front and should be prominently displayed. If you learn about fees for the first time at the closing, don’t sign anything and back out of the deal.

Contact Attorney David J. Karbasian

Contact our office online or call us at 856-667-4666 to schedule an appointment. Your first consultation is without cost or obligation. The sooner you call, the sooner you can move forward with your claim. We can accommodate evening or weekend meeting requests and will come to your home or the hospital, if necessary.

We handle all personal injury claims on a contingent fee basis. We won’t charge any attorney fees unless we recover compensation for your losses.

Common Types of Mortgage Fraud

Common Types of Mortgage FraudThough it may not be getting the publicity it got a few years ago, when there was a national crisis in the mortgage industry, mortgage fraud is still alive and well, and prospective homeowners need to pay close attention to ensure they don’t fall victim to unscrupulous operators. Here are some of the most common strategies currently being used to defraud you when you seek a mortgage.

Predatory Lending

If your mortgage lender is giving you the hard-sell or seems to be making the process too easy, beware. One of the key indicators that you might be victim to predatory lending?—the lender comes to you. If you get a phone call or a mailing telling you you’ve qualified and no credit checks are necessary, you may want to have an attorney get involved in the process. Either way, you’ll b protected.

Appraisal Fraud

Some mortgage companies have “special” relationships with certain property appraisers. What typically happens is that the appraiser overvalues the property and gets a fee (kickback) when the loan closes or is sold. As the homeowner, you may over-borrow and find yourself “under water(owing more than the fair market value of the home)” in a foreclosure proceeding. Appraisal fraud can happen with a new purchase or a refinancing.

Extensive Upfront Fees

With this approach, applicants must pay a “processing” fee when they submit their application. Their applications are routinely rejected. There are variants on this scam. The mortgage company may tell you that you’ve won a trip or other prize, but must pay the processing fee to claim your prize. After you pay the fee, you never hear from them again.

Contact Attorney David J. Karbasian

Contact our office online or call us at 856-667-4666 to schedule an appointment. Your first consultation is without cost or obligation. The sooner you call, the sooner you can move forward with your claim. We can accommodate evening or weekend meeting requests and will come to your home or the hospital, if necessary.

We handle all personal injury claims on a contingent fee basis. We won’t charge any attorney fees unless we recover compensation for your losses.

The Different Types of Product Liability Claims

Barista steaming milk at the coffee machine

When you purchase an appliance, a toy, a motor vehicle or any other consumer product, you expect that the manufacturers have taken reasonable care to ensure that the design and construction of the product are done in such a way that there’s not an unreasonable risk of injury when you use the product as intended. Unfortunately, that’s not necessarily the case. There are many dangerous and defective products readily available to consumers. If you or someone you love has been hurt after using a consumer product, here are the potential avenues for legal recovery.

Defective Design

A lawsuit alleging defective design of a product asserts that manufacturers and marketers failed to act reasonably when designing the product. Under this theory, the product is considered inherently unsafe, regardless of the care with which it was manufactured or assembled. In legal action based on defective design, you must show that a reasonable person would have recognized the defect and would have either fixed the problem or reasonably notified potential users of the risk of injury. For example, if you design a vehicle with a high center of gravity, making it susceptible to rollovers, you must either warn of the risk or redesign the vehicle to minimize the risk.

Defective Manufacture

A product may be considered defectively manufactured under a number of circumstances:

  • Substandard materials were used in the construction of the product
  • The product was carelessly or negligently assembled or fabricated
  • The manufacturer did not properly supervise the employees who were assembling or building the product

For example, if an appliance manufacturer knowingly uses substandard materials or fails to put procedures in place to ensure that products are correctly assembled, there may be liability.

Negligent Marketing

An allegation of negligent marketing essentially says that the manufacturer or marketer did not adequately warn potential users of known risks of injury. For example, the manufacturer of a coffee maker may have liability if the company knew that the product produced water hot enough to cause serious burns.

Contact the Law Offices of David J. Karbasian, PC

Don’t risk the loss of evidence or the disappearance of a witness. The sooner you retain legal counsel, the better! Send us an e-mail today or call us at 856-667-4666 to schedule an appointment. We handle all mortgage foreclosure scam claims on a contingent fee basis. We won’t charge any attorney fees unless we recover compensation for your losses.

Evening and weekend meetings can be arranged upon request. We’ll come to your home or the hospital to meet with you, if necessary.

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