{"id":9678,"date":"2021-06-27T21:46:48","date_gmt":"2021-06-28T02:46:48","guid":{"rendered":"https:\/\/slls.org\/?p=9678"},"modified":"2023-09-05T22:29:40","modified_gmt":"2023-09-06T03:29:40","slug":"live-check-loans-know-your-rights","status":"publish","type":"post","link":"https:\/\/slls.org\/en\/live-check-loans-know-your-rights\/","title":{"rendered":"What Should I Do If I Get a Check in the Mail From a Lender?"},"content":{"rendered":"
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What Should I Do If I Get a Check in the Mail From a Lender?<\/h3>\n
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The information provided on this post does not, and is not intended to, represent legal advice. All information available on this site is for general informational purposes only. <\/em>If you need legal help, you should contact a lawyer. You may be eligible for our free legal services and can apply by calling our Covid Legal Hotline at\u00a01-844-244-7871<\/a><\/strong>\u00a0or applying online\u00a0here<\/a>.<\/span><\/strong><\/h6>\n

I received a check in the mail made out to me.\u00a0 Should I cash it?<\/strong><\/p>\n

Not necessarily.\u00a0 Be sure to read all the fine print to determine whether the check is a refund from a reliable agency such as the Internal Revenue Service or it is a common \u201cLive Check Loan.\u201d<\/p>\n

What is a live check loan?<\/strong><\/p>\n

A live check loan is a loan offer sent by lending agencies to pre-approved borrowers offering a small loan, usually $500-$2500, typically at very high interest rates often above 25% APR.\u00a0 This loan offer will include a check made out to you ready to cash.\u00a0 Live check loans should also include: a disclosure of the loan fees, the annual percentage rate (APR), the payment schedule, the loan agreement, a privacy notice about the sharing of your personal information, your right to exclude your name from future offers \u2013 called an opt-out notice, and contact information for the sender.\u00a0 Upon cashing or depositing the check, you are accepting all the terms and conditions attached to the loan.\u00a0 Be sure to read the fine print included with this check to determine whether this loan is right for you.<\/p>\n

Is this pre-approved loan offer a scam?<\/strong><\/p>\n

Scammers sometimes send fake loan offers via mail, email, or text. These may look very similar to actual live check loan offers, but they are used to get your personal or financial information in order to commit identity theft or fraud.\u00a0 If the loan asks you to send money, personal, or financial information in return, it is most likely a scam.\u00a0 Visit the Consumer Financial Protection Bureau\u2019s Consumer Complaint Database to see if the lender is licensed in your state and whether there are complaints against them at https:\/\/www.consumerfinance.gov\/data-research\/consumer-complaints\/<\/a> <\/span><\/strong><\/span>If you think this offer is a scam, you can report it to the Federal Trade Commission at https:\/\/reportfraud.ftc.gov\/#\/<\/a><\/span><\/strong><\/span><\/p>\n

How does a live check work?<\/strong><\/p>\n

If you want to accept the live check loan, you must endorse the check by signing the back of the check and cashing or depositing the funds into your bank account. This creates a loan agreement that you must repay with interest in accordance with the payment plan included. If you pay late or do not pay, you may be charged fees along with interest, and the lender may report your debt to a credit reporting agency which could affect your credit score. To reject the loan offer, you should securely destroy\u2014by shredding and throwing away\u2014the live check to avoid potential fraudulent use by others.<\/p>\n

How do I determine if I should accept this loan offer?<\/strong><\/p>\n

Live check loans may be convenient since you do not have to complete a loan application or file paperwork. However, live check loans may have much higher interest rates than other loans or credit cards. If you are interested in a loan or line of credit, you should follow these few simple steps:<\/p>\n