MovingForward
Wellington,#2Consumer Comment
Fri, December 03, 2010
There are many red flags regarding this loan. But the biggest red flag is having to send money before the loan is issued. This is a guaranteed scam when you have to pay up front before the loan is issued.
The other huge red flag is the statement: "u must have a down payment of 1200 dollars by 6pm the same day r the loan will go into default".
Financing 101: A loan can not default before it is funded. A legitimate lender will have criteria that must be met prior to funding the loan. If the criteria is not met, then the loan is denied (not defaulted).
I have noticed a pattern in each of these scams. The 'loan officer' uses financial terms in the wrong way without regard to their actual meaning. AND the borrower doesn't recognize that fact and sends the money anyway!
If you need to borrow money, go to a local credit union or bank. If you can't qualify for an unsecured loan, you will know right away and it won't cost you a dime. In any event, never send money upfront to anyone for a consumer loan - it is a guaranteed scam.