It is quite unfortunate that despite rigid monitoring and strict implementation of laws, scams still manage to crawl into the system and dupe thousands of helpless individuals. It is with heavy heart to note that very often; a lot of these scam implementers remain free and unpunished and are thinking of other ways to fool people with their money. In the area of auto title loan, there were several scams already identified and perpetrators were punished but these did not prevent new ones from coming up. How do you detect if the loan company is a potential scammer? Here are some ways to spot a possible auto title loan scam:
- It will offer very low interest rates. This is to attract multitudes of borrowers yet when they apply for a loan and present titled documents, they will inform the borrower that the ones presented can only be accepted if they can provide another asset document. Clearly, the company is fishing for more information in order to target their victims.
- Chances are that potential scammers are new companies and run by people not residing in the area. They know that most borrowers do not play great importance if people running the loan company are local residents or not. For them, what’s important is that the company is very much willing to approve their loans and solve their immediate cash problems.
- The company will allow borrowers to apply for another credit despite the fact that he or she has an outstanding balance. The purpose of which is to lock the borrower especially if the he or she owns a valuable piece of property and the loan company believes that they can cash on it for huge profit. When you encounter this kind of exploitative mechanism, think twice before applying for another loan when you have an outstanding loan yet to be paid.
- After applying for a loan, you begin to notice unusual activities such as:
- You’ve got more mails than ever before coming from different companies offering various kinds of products and services.
- Suddenly, there is an increase of visitors conducting interviews on different subjects and the purpose of which is to gather data from unsuspecting people to find out who among them is a potential milking cow for exploitation.
- All of a sudden, you begin to notice that you receive an unusual load of unsolicited text messages offering you different promos, products, services, and discounts. This can only mean that the loan company is earning money out of their customers’ profile and this is a violation.
- When you enter their premises, look for their business license. If they cannot present one and tell you that it is under process, don’t be fooled with that. Go to the next auto title loans company and only go back when they can present the license to operate and start discussing their services.
A scam can take many forms; direct or indirect. Direct is when they steal money from you without reservation and indirect is when they earn money from you by using third party systems. Thus, you have to be very careful when applying for an auto title loan and any types of loan for that matter.
Contact AAA1 for auto title loan online and throughout California, Illinois, Missouri, and Wisconsin.