One of the most important developments in Italy’s lending market in the last twelve months has been the Italian Supreme Court’s judgment No 12777 of 22 March 2019. It now reveals the creation of financing-fronted structures which enable non-authorized foreign bodies in Italy to lend and do not respect certain principles as unlawful. Following this decision, the Italian market can no longer carry out primary syndications of loans involving unauthorized entities.
As such, whether you are a student or an immigrant, you can obtain any financial support, consolidate mortgage, finance house improvement, and pay for significant events in Italy with relative ease. However, with some terrible lenders out there, it is necessary to know how to verify whether a loan company is legitimate.
Here are some suggestions for identifying possible red flags.
When the creditor is not interested in your payment history
Reputable lenders show that they need to examine your credit, sometimes receiving reports from the three leading credit offices. This is crucial because most creditors need to know if you have a history of complete and timely bills to ensure that you pay off the loan as quickly as possible.
Contrariwise, dishonest companies are not interested in prompt reimbursement. Indeed, they prefer borrowers who are at high risk and are likely to defer to the payment of loans and thus incur their high late charges and penalties.
When the lender isn’t registered in your state
The Federal Trade Committee (FTC) allows lenders and loan brokers to register in the States in which they operate. If a creditor you are looking for is not listing any written states, you might have a loan scam.
See the website of the lender to check the list of states where the lender is legally engaged. Contact the Attorney General’s Office for further verification if you cannot locate such a list. You may also contact the Banking or Financial Regulatory Department of the state to check whether the business operates lawfully in your place of residence.
When a lender requests a credit card
Some scammers are known to require debit cards from buyers for insurance, collateral, or fees. They claim that they need them. It is a fraud. Legitimate financial institutions could charge a fee, but that fee will be deducted from your loan for your application, assessment, or loan report.
A debit card prepayment is an accurate indication of a personal credit scam. It is almost as hard to track as cash, and you cannot report it as stolen if you volunteer a lender.
When the website of the lender is not safe
Visit the lender website address and always search for: A clock symbol for each page where you are asked to provide personal information.
A URL starting with ‘HTTPS rather than ‘HTTP (the additional ‘s’ represents ‘secure’). So, when a URL starts with HTTP, know that it is liable to be a scam lender.
The lock symbol and safe address mean that the site safe from identity theft that steals and sells personal information to other criminals.
When the lender has no physical address
Any creditor you want should provide a location for their company. Still, you will plug the address into Google Maps. In some cases, companies with personal loan scams list addresses that are simply lots vacant.
If a physical address does not show any sign, avoid the lender. Many fraudulent companies like to be untraceable so that you can avoid legal consequences.
When the lender urge you to act immediately
Do not fall for the request for urgency. One of the hallmarks of loan scams is that the loan expired fast – maybe even the next day – and gives you an urgent deadline.
Lenders using such high-pressure techniques could not be good at all. It might be a trick to get you to decide quickly.