Borrower Protection
Most loan problems are visible before you sign: an upfront fee, a lender you can't look up, a promise of guaranteed approval, a payment that takes half a paycheck. These guides show you where to look, how to check, and what to do instead when a loan isn't the answer.
Start here if: Something about an offer feels off, or you want to be sure before you sign.
Loan Scam Warning Signs: How Fake Lenders Get Paid First
Real lenders make money when you repay. Scammers make money before you get anything. Here is how to tell the difference, and the steps to take quickly if you already sent money.
The borrower protection guides, in a sensible order
-
Warning signs
Loan Scam Warning Signs: How Fake Lenders Get Paid First
Real lenders make money when you repay. Scammers make money before you get anything. Here is how to tell the difference, and the steps to take quickly if you already sent money.
-
Explainer
Why "Guaranteed Approval" on a Loan Deserves a Second Look
A lender can't know whether it will approve you until it knows who you are and whether you can repay. Here is how to read the word "guaranteed" in loan ads, and what an honest version of the promise sounds like.
-
Warning signs
Predatory Loan Red Flags: Price, Structure, Sales and Collection
A predatory loan isn't always a scam. It's usually a real loan built so that you pay far more than the money is worth, or keep paying long after you meant to stop. These are the signs, grouped by where the harm sits.
-
Step by step
How to Check Whether a Lender Is Licensed, Step by Step
A license check takes about ten minutes and tells you who you would really owe, which rules apply, and who to call if something goes wrong. Here is the order to do it in, and what each database can and can't tell you.
-
Explainer
How to Read a Loan Agreement, Section by Section
An annotated tour of the parts of a typical consumer installment loan agreement, what each one means for you, and the five numbers to find before you sign.
-
Decision guide
Before You Borrow: Alternatives That Can Cover a Short-Term Gap
A loan is one way to cover a gap. Often the cheaper move is to change the bill instead: its due date, its size, or who helps pay it. Here is what to try first, matched to the most common situations.
-
Step by step
Behind on a Loan Payment? Make This Call Before the Due Date
A missed payment gets more expensive by the week, but most of the damage arrives on a schedule. Here is that schedule, and what to ask for at each step.
-
Explainer
Your Bank Account and a Loan: What You Agree To, and How to Stop a Debit
Most online lenders pay the loan into your checking account and ask to collect from it too. Here's a sample payment authorization with each part numbered and explained, and the right way to change or stop a payment.
Questions people ask about borrower protection
Is it a scam if a lender asks for a fee before I get the loan?
Treat it as a serious warning sign, especially if they want payment by gift card, wire transfer, cryptocurrency or a payment app. Legitimate lenders take fees out of the loan or include them in the payments. Scam warning signs.
How do I check whether a lender is real?
Get the lender’s full legal name, then look it up yourself through NMLS Consumer Access or your state’s financial regulator. Don’t rely on links or phone numbers the company sent you. How to check.
Where do I report a loan scam?
Report it to the FTC at ReportFraud.ftc.gov and to your state attorney general. If you paid, contact your bank or payment provider right away.
- Checker
Lender Red-Flag CheckGo through twelve yes-or-no questions about a lender or loan offer. See which answers are warning signs and how to check further.
- Guided questions
Before-You-Borrow GuideAnswer five short questions about what the money is for and how soon you need it. Get options to look at before, or instead of, a loan.
- Worksheet
Offer Comparison WorksheetEnter up to three real offers. The worksheet totals each one, checks the numbers against each other, and shows which costs least overall.
- NMLS
- The Nationwide Multistate Licensing System, which many states use to license mortgage and consumer lenders. NMLS Consumer Access lets you look up a company's licenses.
- Payday loan
- A small, short-term loan usually due on your next payday, with fees that commonly work out to an APR in the hundreds of percent. Rules vary widely by state.
- Title loan
- A short-term loan secured by your car's title. If you can't repay, the lender can repossess the car. Costs are typically very high.
- Rollover
- Extending a short-term loan by paying a new fee instead of repaying the balance. Repeated rollovers can cost more than the original loan.
- Balloon payment
- A large final payment due at the end of a loan after smaller regular payments. It can be hard to afford and may push borrowers into refinancing.
- Military Lending Act (MLA)
- A federal law that caps the cost of most consumer credit for active-duty servicemembers and their dependents at a 36% military annual percentage rate and bans certain terms.
- ReportFraud.ftc.gov
Report scams and fraud to the Federal Trade Commission.
- CSBS: Contact your state regulator
Find the agency that licenses and supervises lenders in your state.
- 211
A free referral line to local help with bills, food, housing and more.