How to Avoid Scams With Online Loans (Same-Day Cash Loans)

There are loans online that you can get on the same day. They’re a great option if you need money fast and don’t have time to wait for your bank to process the application.

Online same-day cash loans are usually given on the same day as approval, so they’re perfect if you need money immediately. They include payday loans that deposit the same day. However, many lenders online still try to scam Australians even with ASIC’s regulations. 

In this article, we’ll talk about the signs of a scam, how to protect yourself, and what to do if you suspect one.

What this article covers:

Signs of Same-Day Cash Loan Scams

Here are some signs that you should look for regarding loans online:

    • Unsolicited offers: If you receive any unsolicited offer for quick cash loans with same-day payout, you must ensure the sender is legitimate. Otherwise, it’s likely a scam because unsolicited offers tend to ask for money upfront.
  • Upfront payment: This one screams scam. Legitimate lenders won’t ask for money from you. You’re supposed to be the one borrowing money through their same-day cash advance loans. 

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  • Bad or no internet presence: Questionable online lenders either have bad reviews online or have no internet presence at all. Avoid them at all costs; instead, only deal with reputable lenders that have been around for years and have visible customer reviews online.
  • Sensitive information requests: You should never provide sensitive information, like bank account numbers. They can use it to access your account and withdraw or transfer money from it to their dummy account. 

Protecting Yourself From Cash Loans Scams

Here are a few things to remember to protect yourself from cash loan scams:

  • Research the lender by checking their website and ensuring they offer legitimate fast online cash loans. 
  • Read the loan agreement carefully before signing it. If any parts need to be clarified or seem suspicious, ask questions.
  • Ask around for recommendations from friends or family members who have used similar services in the past. If they’ve had positive experiences with certain companies before, then it is very likely that those companies are legitimate.

To be sure that you’re dealing with legitimate lenders that offer online cash advance loans, go to ASIC Connect and search for the name of the lender. There should be results about them. 

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What to Do if You Suspect a Loan Scam

If you suspect that a same-day payout loan offer is a scam, do the following:

  • Contact your bank: Contact your bank or credit card company and let them know what’s going on if you’ve sent payment to the scammers. They can help you cancel  suspicious charges even after your online loan approval.
  • File a report: To file a scam report to ASIC, use their online form or call 1300 300 630. You can also report scams to the Australian Competition and Consumer Commission (ACCC) via their Scamwatch website.

Conclusion

Online cash loans can be a convenient way to get money quickly. However, it’s important to be aware of the risks and take steps to protect yourself. That includes getting away from possible scammers and illegitimate lenders. 

Remember, don’t accept unsolicited offers, see if they have an internet presence, don’t give sensitive information to unknown individuals, and report scammers or even potential scammers right away.

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