In the era of digital finance, lending companies have become popular, offering quick and easy access to cash. However, what happens when these companies start reaching out to you instead?
Recently, a Reddit user shared a post about a popular lending company, “Juanhand,” persistently calling. The question that looms is, “Is JuanHand legit?”. The short answer to this question is YES. Juanhand operates under WeFund Lending Corp., a subsidiary of Paipaidai, a prominent Chinese fintech giant. They are not only SEC registered but also certified to operate.
Now, let’s dive into the nitty-gritty of these lending company calls. Why do they even happen? How can we tell the good calls from the sketchy ones? And what do you do if you find yourself bombarded with these calls?
Stick around, and we’ll break it down together!
Why Are Lending Companies Calling?
Lending companies may call people for various reasons, and these can generally be categorized into a few main purposes:
Special Offers and Promotions
One of the main reasons lending companies give you a buzz is to pitch special offers or promotions. They might have a new loan product or refinancing deal that could be a game-changer for you.
If you’ve taken out a loan and it’s time to pay up, lending companies might give you a ring as a friendly reminder. They want to ensure you stay on top of your payments and avoid late fees.
Follow-up on Loan Applications
If you’ve applied for a loan recently, they might be calling to follow up on your application. This could be to request additional information or update you on the status of your request.
Unfortunately, not everyone keeps up with their payments. If you fall behind, lending companies might call to discuss a plan for catching up or to find out what’s going on. It’s not the most pleasant call, but it’s essential for them to manage their accounts.
Verification and Security Checks
Sometimes, lending companies call for routine checks to verify your identity or to ensure the security of your account. This is especially true if there’s been any suspicious activity or changes to your account information.
Do Legit Lending Companies Call People?
First and foremost, it is important to acknowledge that authentic lending institutions occasionally engage in telephone communication. Such calls may be initiated to discuss your loan application or address specific details pertaining to it. It is important, however, to exercise caution, given that the financial domain is not devoid of fraudulent entities operating under the guise of legitimate lending companies.
Among the illicit organizations that target unsuspecting individuals, names such as Happylend, Rush Loan, Easy Money, Good Pocket, Lucky Star, Swipe Cash, 365 Cash, Mega Loan, Treecash, and Goldpeso have been identified. According to the Enforcement and Investor Protection Department of the Securities and Exchange Commission, these applications were found lacking in the Certificate of Authority department.
These fraudulent entities often employ coercive tactics or make enticing promises of loans without conducting any credit checks, deliberately targeting individuals facing dire financial circumstances. A significant warning sign is if a company requests upfront fees or solicits personal information over the phone without proper documentation.
Two notable scams to be aware of are the “advance fee scam” and the “phantom debt scam.” In the former, fraudsters demand payment upfront before disbursing the loan, only to vanish with the funds. In the latter, scammers assert that you owe a debt that, in reality, does not exist, exerting pressure on you to make immediate payments.
Conversely, authentic lending companies also utilize telephone communication, albeit with a distinct approach. Their calls typically arise in response to your loan application or to authenticate specific information. Legitimate entities refrain from pressuring individuals into immediate payments or demanding sensitive information over the phone without adhering to proper verification processes.
Does a Legal Company Have a Right to Call Individuals?
In accordance with the often-overlooked terms and conditions that constitute the fine print in agreements, legally recognized companies possess the authority to initiate contact via telephone. These terms typically delineate the specific situations in which such communication is permissible. It may pertain to an ongoing business relationship, the provision of services, or discussions related to your enrollment in a particular service.
Think of it as the legal equivalent of saying, “Hey, there might be instances where we need to engage in a conversation about our ongoing activities, and we want to ensure that you’re comfortable with that.” Therefore, when your phone rings and it’s a representative from a legal entity on the line, it’s likely not a random or arbitrary call. The rationale behind reaching out to you is explicitly outlined in the terms and conditions, a roadmap that elucidates why they believe initiating a call is acceptable.
It is crucial to monitor and be cognizant of these terms and conditions consistently. They serve as the backstage pass, granting insight into companies’ permissible actions and limitations, thereby demystifying what they can and cannot undertake.
I Have Not Given My Number, Why Are They Calling?
There are a few reasons why lending companies might be blowing up your phone, even though you never handed out your number like free candy.
One possibility is that someone, maybe a total stranger or even a friend, accidentally gave the wrong number when applying for a loan. Guess what? Congratulations, you’re now the lucky owner of that mistaken number.
Another common situation is when your friends or family, thinking they’re doing you a solid, use your number as a reference when applying for a loan. It’s like being an unwitting character in their financial storyline.
In either case, it’s probably not personal, just a mix-up or good intentions gone awry. So, if you’re wondering why lending companies are blowing up your phone, it’s likely a case of mistaken identity or the unintended consequences of being the go-to contact for your nearest and dearest.
What Do I Need to Do if a Lending Company is Calling?
If you find yourself receiving calls from a lending company and are uncertain about the legitimacy of the situation, it is crucial to take a series of informed steps to ensure your financial security and well-being.
Verification of Legitimacy
Begin by verifying the legitimacy of the lending company. Legitimate lending institutions often have identifiable credentials and documentation. To confirm their authenticity:
- Request the caller’s full name, company name, and contact information.
- Search for the company online and visit their official website to cross-verify details.
- Check for reviews and testimonials from other customers.
- Look up the company’s registration status and licensing through relevant financial regulatory authorities.
Contact the Company
If, after thorough verification, you find that the lending company is legitimate, it is advisable to contact them directly. Use the official contact information obtained from their website or other reliable sources.
Communication with the Legitimate Company
When in contact with the lending company, inquire about the purpose of their call and request detailed information about your account or any outstanding matters. Legitimate lenders will be transparent about your financial dealings with them.
If the company is indeed legitimate, they may request certain documents or information from you. It is crucial to ask them specifically what documents are required and the purpose for which they are needed. This will help you prepare and provide the necessary information accurately.
Escalation to Authorities
If you discover the lending company illegitimate or engaging in fraudulent activities, do not hesitate to report the matter to the police or relevant law enforcement agencies. Provide them with all the information you have gathered, including names, contact details, and any other relevant data.
In navigating the world of lending company calls, staying informed is your greatest ally. Legitimate companies, like Juanhand, operate with transparency, while scams lurk in deceptive promises. If unsure, verify credentials, contact the company directly, and, if necessary, escalate to authorities.
Your financial well-being is important, so empower yourself with knowledge and discernment.