Increases in consumer protection initiatives may have you thinking online financial services scams are finally coming to an end. The reality, though, is that scammers are constantly evolving. Today, financial scams not only victimize consumers, they also victimize legitimate businesses.
For example, when a scammer steals from a consumer who is already in a financial bind they are hindering the consumer’s ability to repay loans they have with legitimate lenders. On top of this, scammers tarnish the reputation and trust that credible businesses have earned from their customers.
Fortunately, continued efforts from consumer protection organizations, like Reform Online Lending, are slowing scammers down. According to the Consumer Financial Protection Bureau’s Monthly Complaint Report, payday loan complaints have shown a 12 percent decline from November 2014 to January 2015 to November 2015 to January 2016. This decline, in part, can be attributed to the aforementioned consumer protection organizations and their efforts.
This doesn’t mean the fight to protect innocent Americans and legal businesses is over, though. Reform Online Lending continues its efforts to create a safer, more secure borrowing experience for both consumers and online lenders. You can visit ROL’s Home page to learn more about its mission and bounty program.
Ridding the industry of bad actors and scammers is not a simple task, but being proactive, staying informed, and remaining cautious as a consumer and industry employee is a good start. Together, we can stop financial predators from defrauding consumers and sullying legitimate businesses.