When you’re in the middle of a financial crisis, the promise of a loan feels like a windfall. It doesn’t mean that you should simply accept any demands that a lending company specializing in car equity Cornwall Ontario loans make. There have been cases where a lender would ask for money up front, something that you might be unprepared for.
What to do if the Lender Asks for Upfront Payment?
The only thing you can do in this situation is to walk away. There have been reports of a lending company approving a borrower’s loan application and later asking for certain fees to be paid in advance. This has turned out to be the M.O of some fraudulent companies. They will say the advance payment is for the “processing” of documents or for insurance purposes. You will probably be instructed to send the money through online payment centers like Western Union. However, you’ll never hear from them again once you’ve sent the money.
While some legitimate lending companies will charge you for credit reports or appraisals, they’ll never demand that payment be made in advance. Whatever fees will likely be deducted from the cash-out.
You should also be aware that it’s illegal for lenders to confirm loan approval or to promise that you’ll secure a car pawn loan over the phone. Confirmations regarding loans are done via email or notice to ensure there’s proof of the transaction between all involved parties.
Trusted Car Loan Expert
Premier Loans Canada gives all borrowers secure and fair services. The company is one of the country’s most trusted lending experts. They offer borrowers loans as high as $100,000, with terms of up to 8 years. The company also has flexible payment plans and the lowest interest rates and monthly payments. Log on to their website to apply or call their toll-free number at 1-855-965-1650.
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