For months and months, credit scams have multiplied everywhere on the web. Online credit having long dethroned requests made in agencies or by phone, we decided to devote an article to avoid internet users being trapped.
We will see in particular the consumer credit scam known as the “loan between individuals” which has massively intensified on social networks. We will also see how to avoid the pitfalls of completely legal but far too expensive credit.
Credit scam: the personal loan trap
The principles of the scam
The general principle of the credit scam is almost always the same. The goal is to make customers who cannot get credit believe that this is going to be possible. We have not listed a case in which the scammer would dabble at a rate much lower than anything that may exist in the market, although this can also happen. The fact that scammers are focusing on this target is not trivial. When you need a consumer loan and all the possible leads are closed, you can tend to lower your guard.
The method therefore consists in making people who fail to obtain their consumer loan believe that they are going to be granted credit. The heart of the credit scam is to ask for an application fee or an imaginary registration fee to get this credit. Sometimes it’s just $ 100 to get a loan of $ 10,000, but you’ll never see the money again and never get your credit. Asking for money to get credit is completely illegal.
The law is very clear on this subject, as indicated in article L. 321-2 of the Consumer Code: »no payment, of any kind whatsoever, may be required from an individual, before the obtaining one or more loans of money. Everything else is commercial wrapping, but note that the wrapping of the credit scam can be very subtle.
Methods to attract customers
To attract customers and make their online credit scam, scammers go through forums, web pages with comments or even social networks. Astro Finance is also the target of several scammers, but moderates all comments. It is impossible to be scammed on our site: all credit organizations are secure and entitled to operate.
The rhetoric is very often the same: a person in need testifies to have been helped by a benefactor who granted him easy credit, while he was on the brink. And we always find the email to contact this credit scammer at the end of the testimony.
How to detect a credit scam?
Here are some tips that should strongly arouse suspicion and make you flee as quickly as possible.
Go through a certified brand
Check that the organization you are dealing with or that the person offering its services is registered with ORIAS. It is the official file of intermediaries in banking and insurance operations. If data is requested, also ensure that a CNIL declaration has been made.
Never pay money
As we have already indicated, it is the law. It is strictly forbidden to ask for money for credit. Systematically refuse to pay, no matter the excuse or the promise of cheap credit.
Just look at the example we have given. Ads of credit scams are often filled with spelling mistakes.
The real fake consumer credit scam
We can’t say that this is really a credit scam but it’s still very annoying: paying hundreds of USD more to get exactly the same credit. This is not a scam as such, but rather a lack of vigilance on the part of the consumer.
Take the example of a 10,000 USD loan over 60 months to finance the purchase of a new car. It is one of the most requested credits in France. We compared the credits offered by the biggest brands:
- Lowest fixed APR rate: 3.40% / monthly payments: 144.99 USD / cost of credit: 699.40 USD
- Most expensive fixed APR rate: 6.07% / monthly payments: 154.32 USD / cost of credit: 1,259.20 USD
Or 559.80 USD more for exactly the same credit! And the most expensive credit organization when we carried out this test was probably the best known!
It is therefore not a credit scam but it is still better to go through a credit comparator to find the best rate. And not just any comparator, because there too, there are credit scams. Indeed, some people make false rankings only based on what they will earn and not on the APR rate. Our comparison only takes into account this rate.