Advance America Cash Advance Scam Prevention: Tips and Red Flags

Advance America cash advance scams can be sneaky and hard to spot, but being aware of the red flags can help you avoid falling victim.

Advance America, a payday lender, has been known to use high-pressure sales tactics to get customers to take out loans they may not be able to afford.

One red flag to watch out for is the requirement to pay back the loan in full on your next payday, which can lead to a cycle of debt.

Be cautious of Advance America's high interest rates, with some loans carrying APRs of over 700%.

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Scammers are getting bolder, creating social media profiles that mimic financial companies to lure you in. They can buy followers and make themselves seem legitimate, so never "apply" for a cash advance loan using a link on a social media profile.

If you suspect you're being scammed, stop all communication with the scammer right away and contact your local police department to report fraudulent activity. You should also make a complaint with the Federal Trade Commission (FTC).

Always trust your instincts, if an offer feels too good to be true, it usually is. Reputable lenders will check your credit and will not contact you by phone.

Be wary of application fees, lenders won't charge fees until after you're approved for a cash advance. You should not have to pay fees before being approved.

Verify everything, double-check the company name, website, and contact information of a cash advance lender. Scammers can create fake websites.

Here are some tips to avoid cash advance scams:

If someone approaches you claiming you owe them a debt, demand they provide written proof of the debt as the law requires – especially if it's for a charge you don't recognize.

Social media scams are becoming increasingly common, with scammers creating profiles that mimic those of financial companies. This can make it difficult to spot a scammy social media profile or direct message.

Be wary of social media links that promise cash advance loans, as they are often scams. Scammers can buy followers and make themselves seem legitimate, so trust your instincts and don't click on suspicious links.

Some common types of loan scams include:

Always verify a lender's legitimacy by checking their company name, website, and contact information, and be cautious of lenders that charge fees before approval.

Unsolicited offers are a common tactic used by scammers to target vulnerable individuals. Scammers often send unsolicited mail promising a guaranteed loan to people, especially the elderly or those living in low-income areas.

These unsolicited offers are designed to make you feel desperate and convinced that you need the loan. Scammers will send you a check and ask you to cash it or enter your personal information into their website.

If you receive an unsolicited offer, don't fall for it. Legitimate lenders don't send unsolicited mail or ask you to cash checks. They also don't require you to enter your personal information into their website.

Here are some red flags to watch out for:

If you're unsure about a loan offer, do your research and verify the lender's legitimacy. Check online reviews and ratings, and make sure they have a physical address and contact information. If it seems too good to be true, it probably is.

Scammers often create fake company names that are similar to well-known legitimate companies to make their scams seem more credible. They might alter the name of a legitimate company slightly to create a fake one, like "Brighter Advance" instead of "Bright Advance".

This tactic is designed to trick you into Googling the name and finding the legitimate company, making the scam seem more trustworthy. Scammers may pose as a well-reviewed and trusted company to collect your personal information.

They can later use this information to steal your identity or access your bank accounts. In some cases, they may wait until you've forgotten about submitting your information before attempting to use it for fraudulent purposes.

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Social media scams are becoming increasingly sophisticated. Scammers can create social media profiles with names very similar to other financial companies.

They can also buy followers to make themselves seem legitimate. This makes it harder to spot a scammer.

Never apply for a cash advance loan using a link on a social media profile. Always use a reputable, secure website or an app from a legitimate cash advance company.

The overpayment scam is a sneaky tactic used by scammers to trick you into giving them your bank account information. In this scenario, a scammer will contact you and inform you that you've overpaid your cash advance loan.

They'll use sophisticated language to explain that you made an extra interest payment or accidentally double paid. This is just a ruse to get you to hand over your checking account information.

The scammer will claim they need to "deposit" the overpayment or refund into your account. But what they really plan to do is transfer your money to themselves.

This type of scam is a classic example of how scammers try to manipulate you into giving them access to your financial information.

Engaging in high-pressure sales tactics or making unsubstantiated threats is a major red flag, and you should never give your private banking information to a cash advance company that resorts to such tactics.

A cash advance company with a website full of typos or an unprofessional design is likely not a trustworthy lender.

Refusing to show you a license to operate a lending business is a clear sign that they're not legitimate.

Asking for a payment before you can be approved for a loan is a common scam tactic.

Some cash advance companies have names that are extremely similar to existing, reputable companies, which can be a sign of a scam.

Be wary of cash advance companies that call you on the phone to discuss lending, as this can be a way for scammers to get your personal info.

A cash advance company that claims they won't check your credit but has no online presence or several negative online reviews is likely not a trustworthy lender.

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Promising you're guaranteed approval for a cash advance is a red flag, as no reputable lender can guarantee approval.

Unprofessional behavior or grammar on a website or in communication is a sign of a scam.

If you're having trouble getting in touch with a cash advance company, or if their phone calls lead to disconnected numbers, it's a sign that they're not a legitimate lender.