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Warning Signs of an 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 / 856-600-HURT 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.

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