Rogue Lending Sites Can Be Very Dangerous To Consumers
January 15th, 2008Auto Loan, Car Loans, car buying process No Commentse-Marketing is a new industry tailored to bringing business and consumers together for a commission or fee. They are very competitive in their attempt to grab the eye of the consumer and direct it toward a service or item. Lending businesses generally pay high commissions to e-marketers. The incentives are high, and some are selling a single “lead” for as much as $50.00. Some e-marketers create websites, which suggest that they are the lender or broker.
There is some concern that emarketers are publishing pages that appear bank-like, yet are simply designed by web entrepreneurs, that do not have lending credentials. In many cases they are soliciting a social security number and other personal information from a would be borrower to be sold to lenders or brokers who can process the applications. Some of the largest marketers have telemarketers phoning, banks and lenders with the offer of “fresh” or “live leads”. This may actually result in lenders “competing” for the application from the borrower and offer additional opportunities.
However most web marketers have not met any of the various state licencing criteria that might require a background check, or insurance bond to protect consumers from various forms of non-compliance or other consumer harm. With identity theft prevalent, it is important that consumers be careful with their loan applications. They should read the “About us” portion of the website to determine if the e-lender is a lender at all. If not, they should proceed cautiously in terms of giving out their personal address, or unlisted phone number.
Consumers should never reveal a social security number or allow a credit report to be ran by a non-lender that has not been carefully reviewed. Caution should be taken when working with the emarketers in order to begin an online application.
