People don’t always feel comfortable dealing with online lenders because there aren’t any face to face meetings and they can sometimes wonder if the online lender they are dealing with is part of a scam.

According to an article published in Sydney Morning Herald last year, “The federal government has shut down dozens of Internet scam artists who had been paying Google to run ads making bogus promises to help desperate homeowners scrambling to avoid foreclosures”.

This is the reason why MyRate wishes to review different ways of checking that the lender you are dealing with is a reputable institution.

First, we advise you to check if the lender you are dealing with is registered with ASIC, the Australain Securities and Investments Commission.

Consumers should always verify basic company and business details by consulting ASIC’s website , which lists all registered Australian companies and businesses.

Secondly,it is also useful to know that since 1st April 2012, it is a requirement to display Australian Credit License numbers on certain documents issued by the lender such as official brochures or credit contracts.

If the company you intend to deal with is not registered on ASIC website and does not hold a Credit License number, chances are that they may be a fraudulent company.

The myRate Team/ CC.