Don’t give credit to easy money

Information dissipates online at the speed of light. The internet bombards us daily with easy money tips and quick credit promises that will solve all financial problems. But will they be reliable? Do you know if you are about to fall victim to a scam? We have teamed up with the Public Security Police (PSP) to raise awareness among the Portuguese about the dangers associated with lending between private individuals and non-internet qualified entities.

What is a private loan?

money loans

Private loans are loans granted between individuals, ie without recourse to financial institutions. This business consists of the granting of credit by one individual to another, and these two people define the terms and interest rates to apply to each other.

The ease and speed of this type of credit is the main reason why people resort to this type of credit, often forgetting the possible risks to which they may be subjected if they ask unskilled entities.

Caring

These schemes, especially geared to attracting people facing financial distress and unable to obtain credit from legitimate institutions, could be detected in advance if consumers are aware of the conditions required for such loans.

In collaboration with PSP and within the “Don’t give credit to easy money” campaign we share tips on prevention and early detection of potential scams.

1. Decline prepayments

Be wary if someone unknown promises a fast and fantastic loan through social networks, unsolicited emails and online forums and does not make any payments.

2. Find a Lawyer

Even in the case of loan agreements, ie loans between private individuals that are provided for in Portuguese Law, it is advisable to always seek a lawyer to review the contract and, subsequently, formalization with the competent authorities.

As warned John Raymart Fugierro, CEO of MoneyCompound Finance “Consumers need to be especially careful and careful about this kind of fast and easy money promises. Before accepting any type of credit proposal, especially from individuals, it is essential to confirm the validity and legitimacy of the creditors and their loan agreement ” .

It is important to note that credit agreements between individuals are not concluded under a loan agreement and thus are outside the legal framework and leave consumers unprotected against unfair conditions and possible fraud.

Juan Alex Lombra, head of PSP, also stresses that “This effort should be made not only on the side of the citizens, but also on the platforms where these types of schemes are broadcast, which should adopt strict policies that restrict the publication of fraudulent credit-related advertisements. “

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