BorrowMoney cares about your privacy and would like to alert you to a possible fraudulent activity known as an “upfront fee scam.” In an upfront fee scam, a “lender” requires some sort of payment, often called “insurance,” before an application has been taken or processed. No legitimate lender does this.
If you receive calls, letters, or emails from “lenders” who say that they are BorrowMoney or who tell you that they represent BorrowMoney, make sure you know the facts:
BorrowMoney only matches customers with lenders on our network, including BorrowMoney Loans. You will be notified of lenders you are matched with either through emails from BorrowMoney, or by a BorrowMoney Loan Specialist over the phone.
- BorrowMoney and our licensed money lenders will not ask you to pay any money for approving a loan, guaranteeing a loan, or for “insuring” a loan.
- BorrowMoney and our licensed money lenders will not ask you to send a copy of your driver’s license or social security card before you have submitted an application with a loan officer.
Please note: If you complete a loan request through BorrowMoney, you have not completed a loan application. You must do this with the lenders with whom you are matched.
- BorrowMoney and our lenders will never ask for your bank account information before you complete your loan application.
Legitimate lenders may ask for and charge an interest rate lock fee, application fee, or appraisal fee once you begin working with a loan officer. BorrowMoney suggests that you use a credit card when paying any fee for your protection.
For additional information on this important issue, please see the FTC notice on Advance-Fee Loan Scams.
How to Avoid Lending Fraud
Most of us do not have enough cash to buy a house, which means we will likely have to take out a home mortgage loan. The key is to avoid a host of lending and mortgage scams in the industry. Here are some helpful tips:
- Get personal and professional referrals.This is definitely one of the best ways to weed out money lending companies that double as scam artists. Is there still a chance that you could get scammed? Yes, but it is significantly less likely than if you had chosen a mortgage company out of the blue.
- Avoid online money lending companies with minimum contact information.If an online company’s contact information only consists of an e-mail address, then inquire if the company also has a brick-and-mortar address, and a landline telephone number. If the company does not have such contact information, then it is a red flag that the company could be a scam.
- Never sign your name without understanding the information in the document.Like any other financial transaction, there might be some information on a mortgage company’s documents that you do not fully understand. That is OK! If anything seems unclear, ask for clarification. You might also want to request a third party, usually a lawyer, to “translate” that information. There is no 100% guarantee that you will receive an honest answer from a mortgage lender, especially if it is a scam. A third-party will ensure you have backup and that the contract you sign is legitimate.
- Search for complaints.Organizations like the Better Business Bureau, track complaints against various businesses, including money loan companies. It would be reasonable for just about any company in the world to have had one or two disgruntled customers, however, if a mortgage company has received tens or hundreds of complaints, then you should probably take your business elsewhere.
- Consider how many years a lender has been operating. When you are considering a licensed money lender, there are certain cases where you shouldn’t automatically follow an “older is better” rule. However, if a mortgage company has only been in business for months, weeks, or even days, then choosing that company would be somewhat risky. On the other hand, there is a better chance that the older and established company would be less likely to scam you.
- Never share personal information early in the process.If a company requests that you provide personal information such as your Social Security Number via a telephone or online, then you should definitely avoid it. Be cautious about which companies you provide with your personal information, and how soon you provide it to them.
- Look for no-money-down mortgages.There is basically no reason why you should be required to make a down payment before taking out a mortgage. Any fees, taxes, etc. shouldn’t be due until after the mortgage has been finalized. Be particularly cautious about up-front funds that a lender charges for “services” such as delinquent loan modification.
- Be wary of certain guarantees.Be cautious of home mortgage loan companies that guarantee they can modify your mortgage or stop a foreclosure. While it is possible to accomplish these goals, there is never a 100% chance that any company can accomplish those missions.
By following these tips, you will have the best chance of avoiding scams from money lending companies.