The Federal Trade Commission and the Better Business Bureau have again warned borrowers against umpteen types of fraudulent lending practices by dishonest lending companies. Since 1914, the FTC has been the government regulated agency designed to protect consumers from corrupt businesses.
The commission is divided into distinct divisions such as Economics, Advertising Practices, Consumer Cover, Consumer and Business Education, Privacy and Identity, Enforcement, Planning and Pipeline, Capital Practices, and Marketing Practices. Each of these divisions has been assigned by the congress to ensure quality services from the businesses and equality for the consumers. For the purpose of watching over online loans, the Financial Practices Division is tasked to focus on different types of lending issues.
The Federal Trade Commission encourages consumers who have been victimized by dishonest banks and other financial institutions. According to their information campaigns, it is very important to report dishonest companies to FTC or local authorities as soon as possible. Failure to report incidents of fraud may create more victims.
With the economic climate, many borrowers are resorting to different kinds of loans. According to reports, a high percentage of both the employed and the unemployed have unpaid loans. The status of the economy is not helping these individuals either.
In response to the times, banks and other financial institutions have come up with alternatives for borrowers. One of the most popular among these methods is the bad credit loans. The growing number of lenders has made it possible for borrowers to choose among the different financial institutions.
This is why the Federal Trade Commission as well as the Better Business Bureau has issued a warning for consumers to be watchful with the lending institution that they are dealing with. While there are companies that provide clean and unsullied services, it is still undeniable that fraudulent companies are lurking in the Internet. Filing a complaint can be done online, in writing, or over the phone.
The Federal Trade Commission reminds users to choose lending companies that offer reasonable interest rate. At the same time, it is also important to conduct an investigation before dealing with the lending company.
It is important to be informed about the modus operandi of such fraudulent companies. The schemes are repeated over and over again. That is why you need to check complaints from Better Business Bureau to see if the situation you are in falls in the same pattern as previous victims.
If you are suspecting a particular company, do not forget to report the business to the Federal Trade Commission or the Better Business Bureau. This will help warn other borrowers against that particular company.
Based on statistics, loans in the United States have increased in the last couple of years. The status of the economy has clearly made a lot of people desperate. In these times of financial need, it is important to be vigilant.
According to the Federal Trade Commission, there are hundreds of trustworthy companies in the Internet today. If the lending company demands processing fees or bad credit fees before the approval of the loan, you should think twice about this transaction and report it immediately.