All About Financial Matters

Archive for February, 2010

If you want to trade shares over the Internet, then it has never been easier, or cheaper. But before you take the plunge it is worth taking the time to make sure your seemingly reputable online stockbroker is legit. As I say below, looks can be deceiving. In its darker recesses the web hides some accomplished scam artists.

With this in mind, the very first thing you should do check is whether the company you have signed with is both legal and authorised. The former is self explanatory, while the latter refers to whether the broker is registered with the Financial Services Authority, the City watchdog.

Start with the FSA website (www.fsa.gov.uk/consumer/fcs/index.html). The link I have included is to a very simple, easy-to-navigate section of the regulator’s giant portal and contains a register of authorised firms, a contact centre and a list of ‘unauthorised’ illegal companies likely to rip you off.

The FSA warns: ” If the firm isn’t authorised, you won’t be able to claim a single penny from the financial services compensation scheme if the firm goes bust and you’ve been badly advised or the money you gave the firm is missing.”

Don’t worry unduly if your broker is based in say France or Germany. Firms operating from European Economic Area (EEA) countries are also be able to trade lawfully in the UK. But as a precaution you should use the Consumer Helpline and Firm Check Service to ensure they are reputable organisations.

Entrusting your cash and investments to firms outside the EU is an incredibly risky business. Bear in mind the difficulty and expense of pursuing complaints - especially if the firm is unregulated.

It is no guarantee that just because a website carries .uk, or .co.uk, it is a British-based broker. Remember this is cyberspace we are dealing with here. I don’t wish to put the frighteners on people, but if you send your money to an illegal operator outside the UK, the chances of recovering any of that investment are close to zero.

Don’t be taken in by the look of the web site. It may appear impressive - and that of course is the whole idea.

Finally, is the site you’re visiting really the site you want? In other words, is the address genuine?
Sites run by legitimate firms can easily be copied. The address might be very similar to one used by a well-known company. If in doubt, call the firm to double check the site address. And don’t rely on the phone number given on the website - this will be bogus too!

Remember, before you entrust hundreds, or perhaps even thousands of pounds to an Internet stockbroker it is worth doing the very basic checks. Happy share trading — and remember, be careful out there.

Ian Lyall is the co-founder of the First Time Investor. which offers help and advices to people new to buying stocks and shares. thefti.com/stocks_and_shares.html The First Time Investor

Payday loans can be processed in a matter of minutes over the internet. Within hours, you can have up to $1000 transferred into your checking account. However, you will need to provide some basic financial information to process your loan. But, requests for too much information are a warning of a scam.

Basic Info Required

To process your application, a payday loan lender will need your contact information, checking account number, and job information. With a faxless application, you simply type in the information. Otherwise, you will need to use a fax to send copies of your driver’s license, pay stub and a voided check.

With your personal information, the lender wants to be able to contact you if there is a problem with your account. They also want to verify that you are 18 or older.

Checking account information is need since the cash advance will be wired to your account. Your lender will also debit your payment. They also want to check that there are no outstanding checks.

Payday loan companies also check to see that you have a steady source of income with a job or pension check. With an employer, they will also verify that you have been employed for more than 30 days.

What Not To Share

Never give out your pin number to any of your accounts. A lender does not need it to deposit or withdraw from your checking account if they are legitimate. And they don’t need it to verify that you have credit cards.

Be especially wary of handing out your personal information, including social security number, personal description, or license plate number. Social security numbers are used for tracking purposes, but be sure you know who you are handing out the information too. Other personal information is often used for identity theft purposes.

Look For Lender’s Name And Address

Before signing up with a lender, look for the company’s name and address on their website. If you can’t find it, request it by phone or email. This way you can contact the lender if you are having problems. Avoid those companies that don’t respond. They are probably going to be shady or difficult to work with.

To view our list of recommended payday loan companies online, visit this
page: abcloanguide.com/paydayloans.shtml Recommended Payday
Loan Companies Online.

Carrie Reeder is the owner of abcloanguide.com/ ABC Loan Guide, an informational website about various types of loans.