Money will always be an issue in the society. It is common for people to find themselves in a position where they are in desperate need of some cash. It could be for a startup business, rent, or just some urgent thing. In such instances, when you realize that there is a place you can quickly get that extra money, it is natural to consider it. People understand this aspect of life and from this need stemmed the existence of Payday and Title Loans services.
Title Loans
Title loans offer a quick and convenient way for people to get some extra money to settle their issues. You can get a title loan in a few hours or a day at most. All that’s required of you is the title of the vehicle you are willing to offer as collateral. According to the study, the most convenient thing about title loans is that they can be acquired online; thus, online title loans.
The fact that title loans can be acquired online decreases the time of the application process since you won’t have to visit the physical offices of the respective enterprises that offer the services. Online applications also provide privacy. You will be doing everything in the privacy of your own home.
Nevertheless, applying for title loans online also poses some serious risks. The study suggests that, without confirming the credibility of the company you are taking the loan from, you could send your sensitive personal details to a fraud company. Furthermore, sending personal details through an insecure internet link gives hackers the opportunity to intercept the transaction and steal your personals details. The study suggests that before engaging in such transactions, you should ensure your computer is virus free, has an active and updated reliable anti-virus, and the company you are transacting with is a legitimate one.
A serious disadvantage of the title loan itself is that if one fails to pay back the loan, one stands the chance of losing the vehicle given as collateral. This happens often than most people realize.
Payday Loans
Payday loans came into existence before title loans. The concept is pretty much the same with the difference being that instead of using the title of your vehicle as collateral, the loan company will use your paycheck. The thing is that they will look at your recent pay stubs to determine how much you earn, and give you a loan based on that information. When you receive your pay, they will expect you to pay up accordingly – of course, with interest.
The Title Loan Spam
Online title loans and payday services have proven to be very useful and convenient for most people. Since money is a constant need for people, this business has a perpetual market. As usual, opportunists saw an opportunity and some of them, being malicious, decided to infiltrate that market and take advantage of the loopholes present.
The study highlights that online lenders also have affiliate programs that give commissions to webmasters, who direct borrowers to their respective sites. This enables the lenders to acquire more customers through the webmasters. However, some lenders create various websites listed under different company names to feign competition. Legally, this is acceptable, but morally, this is so wrong because it makes people make decisions based on deception.
The study found that the main reason for the rise of the title loan spam is competition. The affiliate programs facilitate the acquisition of more customers. Lenders want this and those who are malicious and ruthless create the spam websites to dominate the market while squeezing the life out of the legitimate and honest lenders. This makes it difficult for borrowers to determine who is who and since they really need the money, they end up just working with whoever is available with the hopes that all will be well. It lowers the trust of borrowers in the title and payday loans companies and makes it difficult for them to rely on such services.
The study concludes that online title loans are at a critical level as far as spamming is concerned. These services have helped many but at this rate, trust and faith in such services will be no more. Search engines are the only reliable way of controlling them but there is only so much that they can do.
