With the ever changing economic environment in the world, money lenders are growing more and more in numbers. They are spreading into the heart of cities and capturing a wider audience than ever before. The sad thing, however, is that with the growing number of legitimate money lenders there is also an almost equal growth of illegal money lenders (cons) in the market. As such, as you are making your choice, you should be smart about it to avoid getting caught off-guard with nothing to your name. Below are tips for selecting a legal money lender.
Legal money lenders do not send SMS for marketing services
SMS are great ways to advertise. No question about that. However, when it comes to loans, sending SMS makes the business feel like a scam. And in most cases they are. As a matter of fact, there are laws that restrict money lenders from advertising their services through SMS. Any company that does so faces harsh legal punishments when caught.
Fake lenders copy legit company SMS’s and send them to potential customers. These templates are believable. At the bottom, they even add their very own numbers to add juice to the bait.
Legal money landing companies do not do online bank transfers
Many money lenders promise instant cash to help you salvage your sinking boat. They credit the money directly to your bank account. But while they may be lucrative offers, many of these money lenders are illegal and prefer to use this method to avoid being detected or having to fill out any paperwork that may be incriminating in the future.
Legal money lending companies love paperwork, as tedious as it may seem. They advise on the charges and have you come into their office to finalize the contract. This allows verification on parties involved.
In the event, a money lender offers to provide you with an instant bank transfer, flee like the wind.
Always do your homework
Before you get in bed with any money lending company, you should check to see if they are licensed. You could get this information on their website. As proof of licensing, a license number is provided.
It is important that you get this information since some illegal money lenders in the recent past have resorted to mimicking names in their advertisements. It is normal to be in a rush to get it over and done with. But know that it could end up real bad if you do not take your time.
If you can, read through reviews written about the company then the feedback from previous clients should act as a guide to direct you to the right companies to get in bed with.
Never sign blindly
Always read through the contract before you sign. Illegal money lending companies at times draft empty contracts. If you do not understand the contract, you should not sign. Everything should be explained to you down to the terms and conditions. Speaking of which, they should be in line with the existing rules governing them.
Last but not list, you could enlist the help of those you trust and have sought money lending services before. Their guidance is priceless.