The Internet makes our lives easier. If we need to submit all the requirements over the counter everything before, today, everything happens in just a click away! And this is true including your payday loan on a Petsa de Peligro. So whether you need a cash advance for your daughter’s tuition fee, paying bills, or for your health check-up from your loan lenders, you can always do it in just a few minutes!
But hey! Even the processing is really easy; there are risks that you need to watch out:
- You can lose money and encounter fake loan lenders.
- They can steal your personal information like SSS Number, Address, and bank account number, and use it getting a credit card, changing your address without knowing it, and paying their bills.
- You can also be in serious debt!
So if you’re getting a payday loan, here are the tips ensuring that your loan lender is legit and won’t hurt you in the future:
1. Research them online.
Before even deciding whether to sign up or not, check your loan lender first on the Securities and Exchange Commission or SEC.
SEC is the national government regulatory agency charged with supervision over the corporate sector, the capital market participants, and the securities and investment instruments market, and the protection of the investing public.
You can see the list of all lending companies with the Certificate of Authority (CA) on their website. Certificate of Authority is a certificate issued by the SEC in favor of a lending company to engage in the business regulated by R.A. No. 9474 or “Lending Company Regulation Act of 2007”. If your loan lenders have the CA, it means that they are legal and allowed to operate.
SEC is also giving advisories on possible fraudulent, revoked, or suspended lending companies that you can check on their website too!
2. Compare Loan Lenders.
After checking your loan lender on SEC, your next step is to compare. Don’t decide on a single company. Create at least three options and compare which has the best quality that fits your needs. Here are several good points that you can consider:
- Low-interest rate. Compare which has low interest and fair rate, so it’s not painful for your pocket!
- Flexible payment terms. Don’t hesitate to ask what the payment term is. Is it weekly or monthly? Is there any extension offer in case you’re not able to pay on time? Are there any additional fees?
- Reputation. How many years does your loan lender already operating? What are their existing customers saying online? Is it too good to be true? Is it bias or not? If you think it’s shady and has a lot of negative comments, you better put your hands off, and investigate a bit deeper!
3. Beware of Upfront Fees!
An upfront fee is a fee collected in advance before processing your loan. If your loan lender is asking for an advance fee in exchange of the loan approval, then beware! It can be a fraud!
Remember a legitimate loan lender will not ask money before processing. While a scammer can call this “processing fee” and will tell you that it’s required either for an insurance loan or a bad health credit.
And worst case, if you’ll able to give, they can run, leaving you with nothing!
4. Don’t Fill Out Fake Online Forms.
Have you ever heard of identity theft? How about hackers? Don’t be too excited on filling up your online form! Check first whether your loan lender website is secured to avoid stealing your information. Below are the things that you need to look at. This may look technical, but don’t worry, just read and follow it carefully.
- Check the URL. Make sure it follows the standard URL format like what you’re seeing below:
- Standard format: protocol://resource name/file path
- Example:https://www.pahiram.com/blog/Four-Simple-Tips-on-How-to-Protect- Yourself-from-the-Wrong-Payday-Loan-Lenders wherein:
- Https is the protocol
- www.pahiram.com is the resource name and pahiram as the domain name
- Blog is the category/ location page/ file path, and
- Four Simple Tips on How to Protect Yourself from the Wrong Payday Loan Lenders is the blog title, still part of the file path
- Check if it’s in HTTPS, just like on the above example. HTTPS stands for hypertext transfer protocol + Secure Sockets Layer or SSL. This is a secure version of the HTTP format, which means that all your information is encrypted and communicated on that specific website alone. This results in a green padlock icon.
- Look for trust seals. A trust seal is a seal granted by an entity to websites or businesses for display. The primary purpose of a trust seal is to:
- Inform customers that they are concern about your safety.
- That they are genuine and authentic, and
- Their website is protected with SSL certificates and free from dangerous malware.
Ready to get your first payday loan?
Don’t get caught on flashy and too good to be true offers online may it be on Facebook, Email, through phone or any advertisements. Even if you’re in a hurry to avail your payday loan because you’re in an emergency, always be mindful and prioritize your right and safety! Do your due diligence.
We hope these tips help you with your next payday loan application!
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References:
List of Lending Companies Registered with the SEC and the Interest Rates they Impose.
http://www.sec.gov.ph/lending-companies-and-financing-companies/list-of-lending-companies/
List of Revoked and Suspended Lending Companies.
Nohe, P. (2018, November 2). 5 Ways to Determine if a Website is Fake, Fraudulent, or a Scam. Retrieved from https://www.thesslstore.com/blog/5-ways-to-determine-if-a-website-is-fake-fraudulent-or-a-scam/
Trust Seal. Retrieved from https://en.wikipedia.org/wiki/Trust_seal
Surendra, E (2019, August 7). Have You Fallen For An Online Scam? Here are 4 Warnings. Retrieved from https://www.imoney.my/articles/avoid-online-scams
