Money Connection Fall 2022

3 DON’T GET CAUGHT IN A PRE-APPROVAL SCAM You’ve got mail! And the good news keeps coming, because you’ve been preapproved for a large loan – maybe even a mortgage! Yes, you! It’s a dream come true – until it turns into a living nightmare. Here’s what you need to know about preapproval scams and how to stay safe. How the scams play out In a preapproval scam, a target receives a letter in the mail, an email or a text informing them they’ve been preapproved, or “prescreened,” for a large loan. The letter often comes with a check that can be cashed by the named recipient. Cash that check and you may be playing right into the scammer’s hands. The authentic-looking check cannot be cashed unless the recipient shares their personal information. Of course, this means providing a scammer with all the info they need to empty your accounts or commit identity theft. Checklist for legitimate preapproval offers If you have a credit history, you’ve probably gotten preapproval offers several times. Some are legit offers for a large loan. So how can you tell if one of these offers is legitimate or a scam? First, even though some of these offers may be legit, they’re hardly good for your financial wellbeing. If you cash that check, you’ll be bound by the loan terms, which often have exorbitant interest rates and may demand full repayment quicker than other loans of this kind. If you get an offer as described here, look for this information to verify the authenticity of the offer: n A disclosure of loan fees n Annual percentage rate (APR) n Payment schedule n Contact information for the sender If you’ve been targeted If you’ve been targeted by a preapproval scam, or a legitimate, but disadvantageous offer, let the FTC know about it. Next, you have the right to opt-out of future loan offers for five years, or permanently. To opt out, call 1-888-5-OPTOUT or visit OptOutPrescreen. GET AHEAD GET AHEAD OF THE Curve FALL CAR SALE Oct. 17th - Nov. 11th OF THE Visit our website for more information this October.