Usually, we choose different factors to choose the right loan – most often people decide for example by interest rate, fees, annual percentage rate of charge (APR), maximum loan amount or possible total repayment period. While there is no major risk in the banking sector, and clients certainly do not have to be afraid of any fraud, it is necessary to be very careful with the non-bank loans – many of the credit offers are fraudulent and are mostly prepaid loans.
Typical fraudulent loans
Pre-paid loans are probably the most typical example of a fraudulent loan. Usually, people advertise them, for example, on the Internet in various discussion forums or discussions under the articles, they also appear out-of-the-box in the street or on notice boards in stores, you can also get them to the mailbox and are often published in different newspapers or other printed materials. These loans are often characterized by the fact that they do not include any company name or website, but only the phone number or email address is included in the contact details. Then, the person who advertises the loan will want to pay you – whether in a personal meeting or by phone – to pay a fee before you grant a loan, usually saying that you have already approved the loan. However, such a fee is often quite high (sometimes in the order of several thousand) and after you pay it, the person in question either stops communicating with you or tells you that the application has been rejected. In the end, you will not even have the promised loan or money you paid for it in good faith.
The crown fee does not matter in advance
There is only one exception where the advance fee is no problem and you can pay for it without any worries. These are loans offered on secure and trusted websites and from reliable credit companies. This is a so-called verification fee, the only purpose of which is to verify that the bank account is actually written to you (many companies have a bank account as one of the essential requirements). The fee is usually a symbolic one crown, so even if the loan is not approved you have nothing to lose.
Other examples of fraudulent loans
So far, we’ve only been talking about prepay loans, but there are other kinds of fraudulent loans that you should watch out for and avoid. Another example of this is loans, where you first need to call a pay line. Mostly they are highly overpriced paid numbers, where a minute of talk can cost up to 90 CZK. This is a problem in itself, notwithstanding the fact that the operator on the other hand deliberately extends the call as much as possible in order to earn as much money as possible. But the worst thing is that you will never get any loan anyway and the only result will be a high phone bill (or a flash credit).
How to avoid fraudulent loans?
Of course, the basic advice is never to take high-fee loans in advance (no matter how promised you will get the loan) and not to make a phone call to arrange the loan, but to settle it over the Internet, or at the credit company’s branch. However, if you really want to make sure that you have chosen a trusted and reliable lender, we recommend using one of the graders that only includes secure loans you can rely on.