Market of Emergency Loans in the Philippines: Convenient Lending Service or a Fraud?

CarisCompany.com specialists tell us everything about emergency loans in the Philippines. Here is a common opinion that so-called microloans has become one of the common types of legal fraud. The essence of such loans is that you can borrow the funds with a probability of approval of almost 100 percent. What is the essence of such loans and how not to get hooked?

Principle of Operation of Real and Fraud Emergency Cash Loans in the Philippines

How can you recognize a lender who dies not deserve your trust? It can be hard but in most cases, there is a common list of symbols. A small sweet office, or maybe even without one. Arriving there, the brave and talkative employee starts persuading you right away, with terms and no details explains how simple and easy it is to take a microloan from them. Here hides the main distinctive feature. In a proper lending company, you need to prove that you can be trusted with money, otherwise, be very careful.

Registration takes no more than 5 minutes, a minimum of documents is required, usually it is only one ID, with no solvency/income prove. Actually, that’s it, the money is in your hands, you can make any purchases and acquisitions. Does it sound perfect to you? It should not, with a fraud lender your problems only start.

How Do They Cheat You With Microloans?

1. Interest rate. If the lender does not answer your direct question about the interest rate straightly, if he starts talking to much trying to move your attention to other points, there is a really high possibility that the lender is a rogue. Note! Always learn how much you will have to repay before signing the contract.

2. A package of documents. Have you noticed that application process is so simple? No income certificates, or any documents from the place of work, strange, isn’t it? Look at the contract, which the unsuspecting client signs in the miracle office. Legally, everything is compiled in it so that in case of the slightest delay and shortcomings huge commissions and interest will be implied. In ordinary banks, there is a certain period when the delay can be closed without reflecting the incident in the credit history and without charging any fees. Everything is strict and tough here.

3. Debt pit. Due to the fact that interest rate in microloans is accrued in huge amounts, the debt can easily increase and exceed the original amount by several times. Therefore, making a certain amount every month is almost useless – interest will grow faster. Therefore, it is better to try to pay the full amount at once. And who would want to pay 30 thousand if he took only 10? But alas, sometimes, there simply is no other way.

4. Collectors. This may happen. Unfortunately, under the law, threat recordings are not evidence; video material is needed. Who will enjoy these annoying, and sometimes shameful calls. Moreover, loans without failure – this is real.

What if You Have Been Cheated by Quick Emergency Cash Loans in the Philippines?

What to do if you still got caught by a fraud microloan?

• Do not panic
• Contact a lawyer
• Don’t disappear, if you are not able to pay, try to negotiate
• If your rights are violated, go to police, court.

But there is another side, lenders can become victims of fraud as well. The fight against fraud in online emergency loans industry is important not only for microfinance organizations themselves, but also for borrowers – because loan conditions largely depend on its success. The development of technology, unfortunately, has a downside: scammers who previously operated in markets and streets have now switched to the Internet. Services that give direct access to money are affected primarily by their actions: cryptocurrency exchanges, electronic wallets, insurance companies and microfinance organizations.

According to statistics, on average 6% of incoming applications from potential borrowers have signs of fraud. The situation is even more alarming if you look at the initial application. Here the share of doubtful applications is many times higher. In other words, almost every third client who first applies for a loan may act for fraudulent purposes.

Of course, the risk of default always exists. Any person can incorrectly assess their financial capabilities, or there will be sudden circumstances that will prevent him from paying on time. The main difference between a fraudster is that he is not going to return money from the very beginning. The fact of fraud is revealed when the borrower refuses to pay and reports that he did not take the loan, but someone else did it for him. There are times when fraudsters take loans for people they know well — neighbors, relatives, or acquaintances.

Is Finding Trustworthy Emergency Loans for Unemployed in the Philippines Possible?

You can search for an appropriate and trustworthy lender in different ways: ask friends and acquaintances who have already taken a loan, google search, visit nearest lender’s offices, or look at specialized sites that will help you make your choice. Such an online aggregator is a website with a convenient search, in which you can mark all your wishes for a loan, you will instantly receive a list of only those offers that suit you. You can choose a credit card, cash or electronic wallet, the size of the loan amount, the term of the contract, the presence or absence of the requirements of certain documents, etc. are provided for selection. In addition, when choosing several successful offers on a microloan, you can compare them on a separate page and understand which one will be the best for you.

In any case, no matter how you choose a microfinance company, you should pay attention to availability of official SEC registration and its position in the rating of lenders. Such a rating is compiled by independent companies once a month based on feedback from real customers. The place a company holds in the ranking directly indicates the quality of its services. That is why do not be too lazy to scroll through the entire rating of loans to the end – it is quite possible that you will like another, more reliable option.

The right choice will help you avoid many problems and difficulties in the future. For example, a reliable partner in the financial market will never commit violations in order to lose the opportunity to work. Also, legal and large players offer additional conditions for their clients – early repayment of payments with interest recount, extension of payment or restructuring. Pay attention to the additional services of the lending company, in the future it may come in handy.