Watch Out! Technological progress is not always profitable. Such losses are experienced in some cases of online loan victims.

Technological development is indeed very helpful for the community in facilitating life. However, in the hands of the irresponsible, technological advances can be a tool to reap greater profits. 

Technological Progress in the Field of Financial technology

Technological Progress in the Field of Financial technology

The more advanced technology, there are many things that used to be troublesome, now it can be done just by sitting at home. For example, like shopping, buying food, working, to borrow a number of funds through online loans.

Online loans are now one of the things that are beginning to be in demand. You can easily apply for a loan through a cellphone.

Supposedly, only online financial institutions known as Financial technology ( Financial Technology ) can provide loans to customers.

To establish a, there are many requirements that must be met so that a Financial technology is guaranteed security.

But sometimes, there are people who use this convenience to reap irresponsible profits. Not even reluctant to commit fraud to their customers.

Online Loan Victims

Online Loan Victims

Fraud under the guise of online loans is actually not new. Since 2016, there have been several people reporting and filing complaints regarding this matter.

However, as technology develops, irresponsible individuals become easier to use and capture victims.

Referring to data owned by Red Jakarta, in 2016 there were 10 people who reported being victims of this online loan capital fraud. Then in 2017 the number of victims reporting increased rapidly to 65 people.

And in 2018, there were around 120 people who reported being victims of online loan capital fraud.

The increasing number of victims in an extraordinary amount certainly makes anyone be aware. Do not let you or the family affected by this kind of fraud.

Online Loan Mode

Online Loan Mode

Even though online loans can seem to be an alternative solution to your financial problems, in the long run this will cause you more losses.

Offers that are used by irresponsible online lending institutions are usually in the form of ease of applying for loans, liquid funds quickly, and loans without lucrative collateral.

Therefore, before you are tempted to apply for a loan, there is no harm in first investigating the background or safe procedure for applying for a loan at a lending institution.

Usually, fraud in the online loan mode has several patterns or types, including:

# 1 Personal Data Taken from the Borrower’s Cellphone

In the case of fraud in the online loan mode, the borrower will usually use your personal data. For reasons of convenience, your personal data will be retrieved from your mobile.

The danger is that your data can be misused for the benefit of the lender.

Therefore, if you apply for a loan using an application, make sure you do not give permission to access the application to data that is not related to lending and borrowing. For example, accessing contacts on your cellphone.

# 2 Billing Not Only to Borrowers

Because the data on your cellphone is already owned by the borrower, it’s easy for them to get the number of relatives you have. Sometimes, they use this data to collect your debt.

In some cases, there is a lender who collects a superior from his office, office friends, clients, or even to the borrower’s in-laws. Of course this will be very risky for the progress of your career.

# 3 Billing Is Done in Rough Language

When you apply for a loan at an irresponsible institution, often billing is done in a rude manner. For example, by cursing, threatening, sometimes even in the form of sexual abuse.

There are a number of cases where lending institutions ask the loan recipient to do a naked dance on the railroad tracks so that the loan can be paid off.

Billing can also be done without knowing the time. And of course this will be very disturbing. Professional lenders will not do things like this.

# 4 Unlimited Loan Interest

Irresponsible lenders usually have the requirement to apply for loans that are very easy and tempting. However, once you get a loan and have to return it, then this will be very difficult for you.

This loan institution will impose unlimited loan interest on you. This of course will make it difficult for you because you don’t know when your debt can be completely paid off and finished.

# 5 Contact Numbers and Unclear Addresses

Usually, an irresponsible loan institution will not want to provide clear contacts and office addresses. Even if they have a contact number, often this number is difficult to contact and is not always active.

This of course will make it difficult for you as a borrower to file a claim.

Losses Due to Online Loans

Losses Due to Online Loans

There are some cases of losses caused by irresponsible online loans, for example:

# 1 Divorce

Lenders often collect payments from relatives of borrowers. One of the victims was even forced to divorce his partner because the lender billed the borrower’s in-laws.

# 2 Death

Unlimited loan interest will of course make it difficult for the borrower to pay off the total debt costs he has. This results in a larger debt many times compared to the debt principal.

Some borrowers even get the threat of being killed if they are unable to pay off a very large debt. On the other hand, there are also borrowers who finally decide to commit suicide because of the heavy burden of the mind.

# 3 Dismissal

Another victim from another online loan institution received a letter of dismissal because the lender billed directly to his supervisor at the office.

There were also victims who finally decided to resign because the online loan party billed their colleagues. This makes the victim feel embarrassed and finally withdraws from the job he is carrying out.

In addition to these cases, there are still many other cases caused by submitting online loans to irresponsible institutions.

Of course this will be very detrimental to you as a borrower. Not only material losses or just money, but also mental, time and even relationships with clients and family.

Before you borrow money, you better plan your finances better, so that all of your financial goals can be more focused. You can read the Financial Planning ebook for the age of 30 below for free.