National Financial Hardship Loan Reviews: What Borrowers Need To Know

Financial hardship loans advertised by scammers as “National Financial Hardship Loans” or “National Financial Relief Loans” sound tempting when you’re struggling with debt. But are these sketchy loans legit or just a scam? I’ve dug into real customer reviews and warnings to uncover the truth borrowers need to know.

As Americans accumulate record credit card balances exceeding $930 billion debt relief scams are on the rise [1]. Scammers cold call and email debt-burdened consumers pretending to offer government hardship loans or assistance programs. However it’s all a ruse to steal personal information or money.

In this detailed review, I’ll share insights from borrowers who applied for supposed national financial hardship loans. You’ll learn how to spot red flags, avoid scams, and find real debt relief options.

Overview of National Financial Hardship Loan Scams

The non-existent “National Financial Hardship Department” is a complete scam. There are no legitimate government organizations or lenders offering special national hardship loans or grants right now.

Here’s how this predatory scheme typically works

• You receive a robocall or email claiming you’re eligible for a $36,000 financial hardship loan The message states you must call back or provide information to confirm eligibility

• If you call back, the representative requests personal details like your Social Security number, birthdate, bank account numbers, etc. to “process” your application.

• You may also be asked to pay an upfront “administrative” or “processing” fee of $200-500 via wire transfer, gift card, or other uncommon methods.

• After handing over the fee and your sensitive info, you never receive any loan funds. The scammers disappear with your money and personal data to commit identity theft.

Keep reading to hear real customer testimonials about their disastrous experiences with “national” financial hardship loan scammers.

Victim Reviews of National Financial Hardship Loan Scams

Researching victim reviews can help uncover the true predatory nature of these national financial hardship loan scams. Here are some examples of direct comments from consumers targeted by these fraudsters:

• “I got a call saying I was pre-approved for a $36,000 hardship loan. When I asked for written details, they hung up on me. Total scam!”

• “They said I was eligible for a hardship grant and just needed to pay $400 upfront to get my loan processed. I knew it sounded fishy so I didn’t send any money. Now they won’t even return my calls.”

• “I got so excited when they said I qualified for a $15,000 hardship loan. I gave them my social, address, date of birth, etc. Then paid $250 to expedite the loan. But nothing ever came of it except a compromised identity.”

• “I was having financial problems so I thought this national hardship loan offer was the answer to my problems. They took $500 in “fees” from me and I never heard back again. Stay away!”

These first-hand experiences reveal consistent red flags:

• Unsolicited contact out of the blue
• Request for upfront fees before receiving funds
• Demands for personal information
• Broken promises and no loan provided after payment

Warning Signs of National Financial Hardship Loan Scams

Based on multiple scam victim reviews, here are the top warning signs to recognize these national financial hardship loan scams:

• Robocalls and unsolicited emails: Scammers cold contact victims through robocalls or emails sent in mass batches. Legit lenders won’t call you unexpectedly about loan offers.

• Guaranteed pre-approval: Con artists announce you are “pre-approved” or “confirmed” for the loan to build excitement without proof of eligibility. Real lenders first verify identity and perform credit checks.

• Name dropping: Scammers falsely claim association with the “National Financial Hardship Department” or other made-up agencies to seem credible.

• “Limited time” offers: High-pressure tactics insist you must act now or risk missing out on the hardship funds to motivate hasty decisions.

• Requests for personal information: Don’t ever give out your SSN, bank account numbers, or other sensitive data in response to unsolicited contacts.

• Demand for upfront fees: It’s illegal to charge upfront fees before providing any loan services. A request for upfront payment is a huge red flag.

• Overpayment scams: One variant demands you pay taxes or fees before releasing funds, then overpays you and demands return of the excess amount. The initial overpayment check then bounces.

Being aware of these warning signs can help you recognize and avoid national financial hardship loan scams targeting cash-strapped consumers.

How to Check if a National Hardship Loan Offer is a Scam

If you receive an unsolicited offer for a national financial hardship loan but want to evaluate its legitimacy, here are some smart steps to take:

• Independently look up the company: Search for the business name plus words like “scam,” “complaint,” or “review” to uncover warnings. Check with the Better Business Bureau and Consumer Financial Protection Bureau for company complaints.

• Verify licenses: Reputable lenders should be registered in your state. Look up the company on your state attorney general’s website or the NMLS registry.

• Don’t trust caller ID: Scammers spoof legitimate phone numbers and names on caller ID. Independently look up any number to confirm it matches the business. Ask detailed questions only authorized agents could answer.

• Review loan terms carefully: Scams offer unrealistic terms like guaranteed approval, no credit checks, or lagging on details. Get all terms in writing before providing personal information.

• Never pay upfront fees: It’s illegal for lenders to charge application, origination, or processing fees until after you receive the loan. Walk away if they demand upfront payment.

Being proactive protects you against predatory scammers impersonating legitimate national lenders or relief agencies.

Where To Report National Financial Hardship Loan Scams

If you spot a scam, make sure to report it so authorities can pursue legal action:

• FTC: File a complaint with the Federal Trade Commission at ReportFraud.ftc.gov.

• State authorities: Report the scam to your state attorney general’s office and local consumer protection agency.

• CFPB: Submit a complaint to the Consumer Financial Protection Bureau if the scam relates to consumer lending.

• FCC: Report scam robocalls and Caller ID spoofing to the Federal Communications Commission.

• Phone provider: Your phone carrier may offer call blocking features and ways to report scam calls.

Also notify the impersonated government agency or lender of the fraudulent activity. Reporting scams helps authorities locate the criminals and warn others.

4 Real Ways To Get Financial Hardship Help

While national hardship loans sold by scammers don’t exist, legitimate options provide help to cash-strapped borrowers. Here are 4 real financial relief programs:

1. Contact creditors: If you’re struggling to pay debt, directly reach out to creditors for hardship programs or modified repayment plans. Options like lower interest rates, waived fees, forbearance, or debt management plans can provide relief.

2. Non-profit credit counseling: Reputable non-profit credit counseling agencies offer free debt and budgeting advice, debt management plans, and consumer education. They can help create an affordable repayment plan for your situation.

3. Government assistance: Federal, state and local government agencies administer hardship assistance programs, especially for utilities, medical bills and housing costs. Research specific programs for low-income households in your area.

4. Bankruptcy: Filing for bankruptcy stops collections and can discharge certain debts. Consult a bankruptcy attorney to evaluate if it’s a prudent choice for your situation.

The bottom line is real financial assistance is available, but consumer education is key to avoid scams as you seek relief.

Beware of National Financial Hardship Loan Scam Robocalls and Emails

Unsolicited robocalls and emails offering national financial hardship loans or grants are a dangerous scam. Follow these smart tips to avoid becoming a victim:

• Never trust exciting loan offers coming out of the blue. Do your due diligence before providing information.

• Verify a company’s legitimacy thoroughly before you agree to anything.

• Be extremely wary whenever a company requests upfront fees to process a loan.

• Never hand over sensitive personal or financial details in response to unsolicited contacts.

• Report any scams you identify to help authorities warn other vulnerable consumers.

• Seek assistance only from reputable sources like non-profits and government agencies. Avoid miracle loans peddled by scammers.

Avoid the traps set by these national financial hardship loan scammers. With vigilance and smart decisions, you can find real solutions that improve your financial situation without falling victim to fraudsters.