Scott: Thank you for joining us today. We’re starting a new series called “Financial Scams.” While the list is probably endless really, we’re going to touch on some of the more common scams that consumers are getting their pockets picked almost on a daily basis.
Speaker 2: Picket pocketer’s.
Scott: Pick pocketer’s. So the first one we’re going to talk about today in our series, we’re going to talk about advance fees for unsecured loans.
Speaker 2: Pickle poppers.
Scott: I don’t even know what that is, don’t even know what that is.
Speaker 2: Pickle poppers, pickle poppers, pickle poppers. OK so then what happens?
Scott: Well, I haven’t told you what happens yet. First got to set the stage.
Often times when people are at their most vulnerable, when their in their most desperate situations, if they’ve run out of cash and they’ve used all their traditional methods of trying to get hold of some cash, they will basically try and do anything. One of the first things that usually goes is common sense that we typically would see why you wouldn’t think of potential.
As I was saying, people in desperate situations will sometimes trying anything to get the cash that they need. And these messages will come from all kinds of different places, they can come in the form of an e-mail, they can come from a sign on the street, possibly even a telephone call that was marketed, ads in the paper, a friend of a friend, offering some form of easy qualifying, no credit check, fast application, money fast, things like that. What they essentially do is they will tell you you can have your money very quickly and they will charge some form of small processing fee or application fee anywhere from ten dollars to hundreds of dollars. The sad part of it is that if you’re looking for a big lump sum of cash, let’s say you were looking for five or ten thousand dollars, you’d be happy to pay a hundred dollars to get that big lump sum of cash of five to ten thousand dollars. Hey, it’s just another hundred dollars, right?
Speaker 2: But you always pay prostitutes at the end, not the beginning.
Scott: I will take your word for that.
Speaker 2: Everyone knows that. The fastest way of getting money is just stealing it. I guess that’s what you’re getting at, right?
Scott: That’s right except we’re trying to identify who the crooks are.
Speaker 2: Oh they’re bad?
Scott: This is for the good guys.
Speaker 2: Oh, I’m in the wrong?
Scott: You’re in the wrong class. This is for the people that realize that when they’re desperate they kind of put the brakes on for a second.
Speaker 2: Yeah, OK, so let’s help those guys out, we’re heroes.
Scott: Let’s help those guys. What they typically will do, is say OK, you can get, some of the tell-tell signs are easy credit, no credit check, fast application, money in your account in 24 hours, things like that. So people, if they’ve tried everything, will do whatever they can to try to get the money they need. These scammers, the crooks will charge them anywhere from ten dollars to fifty dollars, to hundreds of dollars and some people will just fall prey to it right away. So if you’re looking to borrow five or ten thousand say, oh it’s a hundred dollar application fee but I’m going to have five or ten thousand dollars in my checking account by the end of the day.
Speaker 2: Well, that’s just foolish, I mean the only sign I believe is two for one. If I can get two of these for the price of one, right now, we’re good to go. Because I own it now.
Scott: You do.
Speaker 2: That’s make believe, oh give me fifty dollars I’ll give you this. No, please. So what do you do to stop this, what happens?
Scott: First off, even though you may be in a dire situation, just step back for a second. You just realize that no one in their right mind is going to give five or ten thousand dollars, even a thousand dollars really, of someone they don’t even know, just on a whim. They’re going to want to know who they are.
Speaker 2: They’re going to want to run their credit.
Scott: They’re going to want to run their credit, or they’re going to be able to verify who they are, there is going to be something, or they’re going to want some form of collateral. But at the end of the day what these guys, the only thing they’re interested in is whatever money you have left in your pocket. Because they’re going to want to put it in their pocket and they’re going to disappear.
Speaker 2: Yeah, I mean [beep 04:15] the police, right?
Scott: Everybody. So at the end of the day, you’re already in a bad situation. Now you’re fifty, a hundred, two hundred dollars less than where you were ten minutes before and that didn’t help you a bit.
So anyway, that’s what you want to look out for. If you’re not sure of someone that you’re dealing with, most lending institutions have either a state or a federal license or registration that they must have, so check them out. Make sure they’re licensed, and they’re in good standing, and they have the ability to lend money. Or even check families, friends, family members, co-workers of some good sources they have done business with before you just open your wallet to some sign or some e-mail that you received.
Speaker 2: Yeah, and keep your legs closed. That’s a wrap.
Scott: That is a wrap. So, for DCCF financial community I’m Scott [Tinnell 05:06]