The loan shark seeks its unsuspecting prey in the big pool of loan seekers, who are gasping for breath at the banks because their applications are rejected with great regularity. Low earners, mini jobbers, students and apprentices, the unemployed, long-term sick, pensioners, but also self-employed and freelancers with quite a good income frolicking here. Now it’s important to be careful so that you do not become easy prey.
Without employment contract runs practically nothing
Common to all these target groups is that their income is either low or uncertain – if only because of their age, and, in addition, pensioners have a particularly secure income that is not threatened by unemployment or illness. The practical online loan comparisons, in which often hundreds of banks present their terms clearly, are usually limited to those with normal creditworthiness, ie a permanent contract and a net income of at least 1,000 USD per month.
Anyone who can not demonstrate that will need the services of a professional credit intermediary. Although the comparison portals are not consumer protection institutions, but financial intermediaries who work against commission. Their business model, however, relies on fast, easy loan applications that can be completed easily. The commission in this case flows from the lenders, because it is a desirable business in which the bank earns. For the prospective customer and later borrower the service is free.
Even serious brokers require money
This is different in the more difficult cases. Banks do not queue to sell loans of doubtful creditworthiness, and they pay little or no commission on these contracts. Therefore, the borrower has to pay the intermediary here. That’s fine so far – the concept is known by real estate agents.
The devil, as so often, is in the details. If you read the conditions exactly, you do not accept any general terms and conditions (GTC), especially with online offers, by clicking the mouse, without reading them. A reputable broker will not demand cash in advance, either directly or hidden via download fees and chargeable 0900 hotlines. Also, cash on delivery is prepayment, because you have to pay before you get the items ordered. Remember: They wanted a loan and no books on debt counseling, no application documents, no credit card, which, by the way, is completely worthless as a credit card, even if the advertising suggests the connection with a credit agreement. All these are methods of loan sharks.
The terms and conditions should also provide no obligation on your part to reimbursement of expenses without mediation success. Dubious mediators do not even intend to get you a loan. After some time you get instead of a loan agreement a hefty bill for the expenses incurred in the “unfortunately unsuccessful efforts”. Accept only fees in case of a successful mediation – so you will not be a victim of the credit shark.