Loan Scams: How to Protect Yourself

Have you ever received an unexpected call or email offering a loan? Be cautious! These may be loan scams designed to steal your personal information or money.

While jumping on a seemingly great deal is tempting, it's crucial to approach such offers with skepticism. Here's what you need to know about loan scams and how to protect yourself:

Common Loan Scams

  • Phishing scams: These involve emails or texts pretending to be from legitimate financial institutions. They often ask for personal information, such as your Social Security number or bank account details.

  • Advance fee scams: Scammers promise loans in exchange for upfront fees. Once you pay the fee, they disappear.

  • Guarantor scams: You're asked to guarantee a loan for someone else, often a family member or friend. However, the loan is fraudulent, and you could be held responsible for the debt.

“Be wary of offers that seem too good to be true.”

How to Spot a Loan Scam

  • Unsolicited offers: Legitimate lenders rarely offer loans without you applying.

  • High-pressure tactics: Scammers often try to rush you into making a decision.

  • Requests for upfront fees: Genuine lenders typically don't charge upfront fees for loans.

  • Unclear terms: The loan terms are often vague or confusing.

Protecting Yourself from Loan Scams

  • Never provide personal information to unsolicited callers or emails.

  • Verify the legitimacy of the lender. Contact the lender directly using information from their official website.

  • Be wary of offers that seem too good to be true.

  • Avoid paying upfront fees.

  • Report suspicious activity to the Federal Trade Commission (FTC) or Wisconsin’s Bureau of Consumer Protection.

Remember, it's always better to be safe than sorry when it comes to loans. If you're looking for a legitimate loan, consider contacting Public Service Credit Union. Our experienced loan officers can help you find the right loan for your needs.

LoansKyle Turner