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Loan frauds happen when a dubious company tries to defraud someone with bad credit history under the pretext of providing a huge amount of loan or a credit card. You should be very alert when any company approaches you with such offers. You should inform the local police if the lender is ready to provide you a loan or a credit card without being bothered about your credit report. This apart other important signs are - if the loan is offered over phone and the lender asks you to wire the deposit amount or, if the lender keeps adding new fees which are not disclosed clearly or prominently. You should also check whether the company is registered in your state or not. Another form loan fraud is student loan fraud. Generally students in the United States can avail student loan from two different sources - federal loan which is sponsored by the federal authority and private loan. Student loan fraud occurs when a fraudster tries to make financial gain by deceiving a student by promising that the student loan debt can be erased. The victim is generally asked to write a check to his/her lender under the title of ‘For the Discharge of Debt’. Fraudsters try to trick their victims by taking cue from several other legitimate student loan waiver programs introduced by the government. This article answers some of the frequently asked questions on such frauds and laws governing them. How can I ascertain the genuineness of the loan?
You should get an idea about it if the company offers you guaranteed loan or credit card and tries to impress you by saying that you have been pre-approved or selected for the loan amount. If the company asks you to wire some amount of fee in the name of advance fee for processing, application, repayment or insurance, you can be sure that it unlikely to be genuine. Remember one thing, no legitimate company will provide you loan over phone or without verifying your credit history. Who should be held responsible if a student has been a victim of student loan fraud?
It primary depends on who received the money and how. If you have any documents or evidence on to whom you gave the money or wrote the check, then you have to hand them over to the investigating agency. How can I check if a loan company is a fraud or not?
You should get in touch with the Better Business Bureau. You can also approach the National Credit Union Administration and request them to verify the existence and authenticity of the credit company. What should I do if I have been a victim of loan fraud by a credit company?
You need to mail the company a certified, return receipt requested letter asking to refund your money in total in a specified time frame. You also have to inform that you will have to take legal action against them if they fail to refund your money. Make it very clear to the company that you are going to sue them not only as a breach of contract case, but also on the grounds of deceptive trade practices. This will entitle you not only for your damages, but also an additional amount equal to three times that as punitive damages. You can also get in touch with your state’s attorney general to avail required legal aids. It is also advisable that you should retain the services of a criminal lawyer who could help you on this. What should somebody do if he/she gets a call from a person claiming to be from a law firm regarding the settlement of a pay day loan that the he/she never applied for?
You can simply ignore such calls somebody most likely trying to trick you. If you have the phone number, you can get in touch with your local police. Never fall prey to such calls, if possible get in touch with a criminal lawyer who could advice you on this. If you need to know more about such frauds, you could ask a criminal lawyer who could assist you on this.
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