Are Private Lender Lists A Scam?

Q: Have you heard of or used a website that offers a list of private money lenders?  Is this a scam?  Louis, Mendham, NJ

A: Louis, I’m not sure what particular website you’re referring to but generally speaking, you should always be skeptical of anything you see advertised on the Web particularly if you don’t have any way to verify the company or individual behind it.

Here are 3 indicators that an online service may be fraudulent:

1) They have no physical address

2) They charge upfront advance fees

3) They exert pressure to act immediately–advance fee loan scammers, for example, will try to get you to send money or give out personal information (credit card number, bank account information and social security number) before you even get any paperwork.

To counter this threat, insist on receiving the necessary paperwork before deciding whether to apply for the loan or line of credit.  There are a lot of scammers out there, but if you’re smart & careful, you can avoid becoming one of their victims.

Thanks for your question, Louis, good luck.

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