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Auto Loan Scams And Fraud

When it comes to taking up an auto loan, being able to avoid falling a victim of auto loan scam is something that everyone is concerned about. Auto scams is not all about being criminally defrauded, rather it entails all deliberate and non-deliberate act by a lender to dispossess you of your hard-earned money.

Some of the most popular auto loan scams that most lenders pull entail those that are intended to hike their commission rate, debase your credit score, and cajole you into buying extended warranties from them.

For instance, one of the most popular scam acts that most lender pull is this, when taking up an auto loan, an individual who has bad credit is usually required or requested to produce or provide a cosigner to cosign on his auto loan application. However because must car dealers are shady and do not want their financial backers to be exposed too much risks, they usually connived with lenders and issue the credit in the name of the cosigner. In essence what this means is that the cosigner becomes responsible and is charged with the responsibility of repaying or paying back the loan that he did not take but only cosigned on.

More also falsifying an applicant’s credit score is yet another scam that is being pulled by mist lenders now. Although not so rampant, there are some lenders who rank your credit score much more lower than it actually is, this they usually do so that they can charge you higher interest rates.

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