Sleazy and Easy Auto Loan Plans: How to Avoid Ripoffs

There are many easy auto loan offers that are available to consumers in order to provide them with the financing necessary to purchase a new vehicle. Many of these offers are legitimate and may go by the name fast auto loan or some other marketing device. They provide a way for individuals of different credit profiles to be connected with lenders that are willing to extend credit and facilitate the purchase of a new or used vehicle.

Scam Artists

Some of these lenders however have developed a reputation as scam artists or sleazy loan providers. The hallmark of these lenders is the way in which they promise fast and quick loans with no money down and no questions asked. The advertisements used by these operators, usually web-based, appear as pop-up ads or email spam and lead you to websites that may end up being a front for criminal activity or fraud.

Investigate All Claims

You should always investigate any promise or claim made by a person or company unknown to you regarding easy auto lending. The process for applying for an auto loan can be simple and fast but it is not easy. It requires you to provide certain information regarding your financial situation, the type of vehicle being financed and the source of any funds in terms of a down payment or collateral necessary to secure the loan. Unsecured loans that do not have collateral requirements may require a high credit score in order to qualify.

Obtain Background Information

You can check with your local better business bureau or local or state business office for information about any complaints or disciplinary actions that may have been taken against a particular lender. You can also check the company’s website for contact information or an address to determine where the company is domiciled. If the company is properly registered with a state, you should have no problems finding registration information. A company claiming to be incorporated but in fact is not should throw up an immediate red flag as to its legal status and motives.

Read Their Information Carefully

The company’s website should provide you with information detailing the loan, all terms and conditions and the costs relative to the amount being borrowed. There should be some promissory note or other loan document generated and the terms as discussed should be spelled out completely in the document. This will prevent you from being involved in some type of “bait and switch” scheme where you provide information concerning one type of loan and a totally different offer comes back.

Report Suspected Fraud

If you suspect that you are victim of fraud, you should report the company immediately to your local law enforcement, FBI or other regulatory entity for follow-up. Doing this helps to remove these types of operators from the web and lessen the chance for you to become one of their victims.


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