Lending Scams Targeting Our Veterans
Veterans, who protected our nation, often face scams after coming home, causing money problems. As VA loan experts, we aim to expose lending scams targeting veterans, outlining common tactics used by scammers. We will explore the outcomes for victims and provide important guidance to safeguard veterans and active duty service members.
Types of Scams Veterans Fall Prey To
Veterans and their families should be cautious and informed about scams targeting them and active military members. Recognizing warning signs can help avoid scams, such as offers that seem too good to be true.
Here are common types of scams that target veterans:
1) Imposter Scams:
- Scammers pretend to be from the VA, rushing veterans to refinance their VA loans at a low rate. They may request sensitive information like Social Security numbers and bank details.
2) Government Agency Imposters:
- Scammers pose as government agencies like the IRS or Social Security Administration, falsely claiming eligibility for special government loan programs. They seek personal information for supposed applications.
3) Loan Modification Scams:
- Scammers charge upfront fees and fail to deliver promised assistance in loan modifications, often adding hidden costs. Some may charge for services already available for free from the VA or other government agencies.
4) Secret Government Funding Scams:
- Exploiting veterans’ lack of awareness, scammers falsely offer “secret” government funding programs, pressuring victims to provide personal information for non-existent benefits.
5) Excessive Fees and Misrepresentation:
- Scammers attract veterans with low rates but include hidden fees, increasing the overall loan cost. They also misrepresent loan terms, leading to unexpected expenses and unfavorable agreements.
6) Pension Poaching Scams:
- Dishonest advisors deceive veterans into making poor pension-related investments, resulting in financial losses. Some may attempt to take control of veterans’ pensions.
Veterans Face Risks from Lending Scams
VA lending scams are targeting many of our veterans, especially those who are struggling financially.
Beware of the phrase “Guarantees Approval” in emails, websites, or marketing messages. Fake lenders promise easy approval without credit or income checks, preying on veterans in urgent situations.
These scammers mimic legitimate lenders, going as far as registering as a business in the veterans’ state. They create convincing websites, forge documents, and pose as genuine representatives. Identifying these scams becomes challenging for veterans.
Falling for these scams can lead to severe consequences, including financial crises, bankruptcy, and damaged credit scores. Veterans may struggle to secure future loans or stable housing.
If an offer seems too good or pressuring, pause and research before proceeding. Let’s support and safeguard our veterans from exploitation during vulnerable times.
Tactics Targeting Veterans
Scammers continually evolve tactics to exploit vulnerable individuals, including veterans. They exploit society’s trust by using different tactics to benefit themselves financially.
One common ploy involves scammers posing as reputable organizations offering financial aid to veterans. They create fake websites or send emails pretending to offer special loans or grants. They use official names or logos to appear trustworthy.
One strategy is to target financially struggling veterans by offering them fast solutions. These solutions can include loans or credit repair services. Exploiting desperation, scammers promise relief from financial troubles. Unfortunately, they often take money for services that are never provided.
Some scammers pretend to be from the VA, asking for personal information to update records or improve benefits. Identity thieves or other fraudsters then use this information for identity theft or other fraudulent activities.
Scams may escalate by requesting fees upfront, with scammers vanishing after receiving payment. The situation leaves victims in greater financial distress.
Legitimate assistance organizations conduct thorough background checks and never demand upfront payments. If you suspect a scam, report it to your local law enforcement agency.
You can also contact your state attorney general or reach out to the Consumer Financial Protection Bureau for help.
VA Loans from HomePromise
Applying for a VA loan with HomePromise is safe and free. We are an approved lender with the US Department of Veterans Affairs. Call 800-720-0250 to speak with one of our VA loan experts.
VA Debt Consolidation Loans & Military Debt Consolidation
Even with the best of intentions, bills can start to pile up. From unexpected medical bills to high interest credit cards, debt can happen to anyone. Other expenses like college tuition, delinquent taxes, and second mortgages can also cause financial stress. For veterans and military families currently experiencing financial difficulties, VA military debt consolidation loans can help.