7 Signs of Personal Loan Scams

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1. Text messages and robocalls
2. Advertisements of ‘guaranteed’ approval
3. No state registration
4. A bad online reputation
5. No physical address or contact information
6. Asking for money or gift cards
7. Rushing you through the loan process
What to do if you’ve been scammed
- Try to get your money back. Your debit and credit cards have certain protections that may help you recoup some or all of the stolen funds. Reach out to your bank card issuer immediately for the best chance of fast reimbursement. You’re less likely to get the money back if you sent it via gift card or digital wallet.
- File a report. Investigators prioritize scams that affect many people, so filing a report could get the scammer on their radar and help others avoid the same fate. Report fraud anonymously to the National Consumers League at fraud.org.
- Freeze your credit. Put a block on your credit report to keep unauthorized individuals from opening up accounts in your name. You can freeze your credit by contacting each of the three major credit bureaus — either online or by phone or mail.
- Get support. If you’ve lost money, a nonprofit credit counseling service may help get you back on track. These organizations can help you budget, manage debt, negotiate bills and find community resources that may provide funds or other assistance.
- Find the cash you need. There are legitimate ways to borrow money, whether it’s from a loan company or friends and family. If a personal installment loan is your best option, compare loans from multiple reputable lenders to find affordable financing.
Article sources
- 1. National Bureau of Economic Research. Prodigals and Projecture: An Economic History of Usury Laws in the United States from Colonial Times to 1900. Accessed May 2, 2025.
- 2. Federal Register. Federal Interest Rate Authority: A Rule by the Federal Deposit Insurance Corporation on 07/22/2020. Accessed May 2, 2025.
- 3. Federal Reserve Bank of St. Louis. Finance Rate on Personal Loans at Commercial Banks, 24 Month Loan. Accessed May 23, 2025.
- 4. Consumer Financial Protection Bureau. What Is a Debt Relief Program and How Do I Know if I Should Use One?. Accessed Jan 16, 2025.
- 5. Experian and Oliver Wyman. Financial Inclusion and Access to Credit. Accessed Jan 23, 2025.
- 6. Internal Revenue Service. Canceled debt – Is it taxable or not?. Accessed Apr 1, 2025.
- 7. National Credit Union Administration. Credit Union and Bank Rates 2024 Q4. Accessed May 23, 2025.
- 8. Federal Reserve. Military Lending Act. Accessed May 2, 2025.
- 9. Consumer Financial Protection Bureau. Consumer Use of Buy Now, Pay Later and Other Unsecured Debt. Accessed Jan 24, 2025.
- 10. Center for Responsible Lending. Unsafe Harbor: The Persistent Harms of High-Cost Installment Loans. Accessed May 2, 2025.
- 9. Consumer Financial Protection Bureau. Consumer Use of Buy Now, Pay Later and Other Unsecured Debt. Accessed Jan 27, 2025.
- 12. Internal Revenue Service. Retirement Topics - Plan Loans. Accessed Apr 8, 2025.
- 13. Internal Revenue Service. Retirement topics: Exceptions to tax on early distributions. Accessed Apr 8, 2025.
- 14. Administrative Office of the U.S. Courts. Bankruptcy Basics. Accessed Apr 8, 2025.
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