In this May 24, 2018, file photo, Rosa Franco, director of lending at Neighborhood Trust Federal Credit Union walks out of the bank to head upstairs to the offices of one of their financial partners in New York.
Julie Jacobson | AP
If you didn’t already know, scam lenders and loans are on the rise, fueled by the economic fall-out of the Covid-19 crisis. Bad lenders have been around for a long time, however, and though the tactics they employ may evolve over time, with a keen eye and some common sense, you should still be able to spot them pretty easily. The proliferation in recent years of online lenders has also created a renewed emphasis on researching lenders’ online presence and any complaints. Here are some key red flags and how to spot them.
Where to Start
If you’re being offered a loan by a company you haven’t already vetted thoroughly, the easiest place to start doing so is online. A simple search query should generate enough to get you started – take a look at their online footprint, any associated customer reviews, or signs of negative news stories. Then, it’s reasonable to follow-up with a lender search by name with both the Better Business Bureau (BBB) and the Consumer Finance Protection Bureau(CFPB). The BBB can provide a plethora of information, including customer reviews and complaints, and an A-to-F letter grade rating of a lender’s reputation and business dealings.
Mark Schlipman, founder and CEO of Schlipman Wealth Advisors, suggests that contacting the…
