Financial fraud and borrowing of false data is an unpleasant everyday for loan companies. Fortunately, modern lenders have a number of tools to expose dishonest borrowers. What tools are we talking about? Advise.
Many loan companies offer ID cards. You only need your ID, mobile phone number and account number to sign them up. Although it may seem that payday loans without certificates are the perfect gateway to fraud and abuse, this is just a pretense.
To eliminate the risk of fraud and fraud, loan companies use personal data verification procedures.
Checking data by making a verification transfer
To check if the person who takes out the loan is the one that the lenders actually claim to be, they ask borrowers to make a verification transfer.
Its amount is minimal and may range from 0.01 to 1 USD.
When the lender receives the money he will be able to check if the bank account holder details match the application data. If the information is the same, the lender may proceed with further examination of the application. If they differ from each other, it may be a sign that we are dealing with an attempted extortion.
What instead of a transfer?
If your account has been taken, e.g. by a bailiff, and you do not have the option to perform a verification transfer, you can use a special application.
The application will connect to your bank account, download and provide key information to the lender. Using the application is simple and secure, and in addition – allows you to maximally reduce the time needed to verify the application.
Certificates from the employer
Another way to secure the interests of the borrower and the lender is to provide a certificate from the employer regarding employment and / or income. This form of verification is characteristic especially for companies offering installment loans. Remember, however, that additional documents are needed only in justified cases.
Lending companies, taking care of the comfort and satisfaction of their clients, try to simplify procedures as much as possible and reduce the amount of formalities to the necessary minimum.
Before you apply, make sure you know what documents you need to get a loan.
I lost my ID. What to do?
If you notice that your ID card is missing, do not waste time and reserve the document as soon as possible. How? Using the website of the Credit Information Bureau. Restricting the document will be possible only if you have an account on the BIK website. So it’s a good idea to set up an account in advance.
Thanks to it, you will not only be able to provide proof from anywhere in the world and at any time. A profile at the Credit Information Bureau will also allow you to check your credit history.
After the evidence has been stipulated, you will also need to report the theft (or loss) to the police.
Watch out for phishing scams
Are you also wondering how to take out a loan without worrying about personal details? Unfortunately, despite the security of data leaks are still a pressing and current problem. Especially for loan companies that can lose customers through such incidents.
When taking out a loan, use only the services of known loan companies with a stable market position. How to recognize such a company? The first step should be a visit to her website. What to look for on a loan company website? Check if the company provides its clients with contact details. Please also note the NIP and KRS numbers.
Note: there are lenders who use a premium rate number to contact customers. If the phone number on the site raises your doubts, be careful. No self-respecting loan company makes you pay customers USD 8 for 1 minute of conversation with a consultant.
Before you sign the contract, also check out reviews on lenders in social media, forums and discussion groups. A small investigation will help you avoid wrong decisions that can have dramatic consequences.
Watch out for misselling
Loan fraudsters often act in a veiled and seemingly harmless manner. An example of this is misselling. Misselling is dirty sales – using low ethical and honest techniques to sell a product at all costs.
Misselling is also associated with deliberately misleading the customer through a lack of reliable, true information on the functioning of financial products.
Honest lenders do not recognize or do so. By presenting all costs of the loan to the client, informing him about additional fees, the amount of commission and the consequences of late repayment, they act honestly and ethically.
Being aware of all the pros and cons of a given financial product, a potential customer has a chance to make a responsible decision based on rational, real arguments.