The Cubic Loans website is very convincing at first glance, but there are a few concerning details about the business that raise some red flags.
While there are plenty of cash loan companies in South Africa, the real trick is weeding out the legitimate companies from those looking to take advantage of cash-strapped individuals.
What is not adding up with Cubic Loans
Cubic Loans is a cash loan company that happily boasts that it has paid almost R90,000 worth of daily payments to 94,000 happy customers, since it started with traditional lending services in 2013.
At first, the Cubic Loans website certainly seems very promising, with a whole load of information, striking graphics and a range of add-ons, such as “Calculator” and “News” sections, social media links and more.
However, upon closer inspection, a few things about this loan provider just do not add up like they should.
Does Cubic Loans have the right credentials?
The first step in determining whether a loan provider is as legitimate as they claim to be is always to check the company’s credentials.
Cubic Financial Solutions (Pty) Ltd is registered with the National Credit Regulator (NCR) and the address listed on the website does match up with what is listed on the NCR website.
However, the NCR has the final registration year of this company listed as 2018, but the Cubic Loans website states that it has been operational since 2013.
The company’s contact number also does not match up with what is listed on the NCR’s website. Moreover, there is no record of the company being registered in South Africa.
The Cubic Loans Team
When it comes to loan providers, checking the company’s credentials is often not enough. And you will often need to take a closer look at the company’s entire team.
But, when you look into the members of the Cubic Loans team listed on the company’s website, the only thing that comes up is a website for a different loan company called RAM-B, which, incidentally, seems to be a near carbon copy of Cubic Loans.
Other red flags to be on the lookout for
The unfortunate reality is that you often will not know that you have been involved in a cash loan scam until it is much too late.
However, there are numerous aspects that you can be on the lookout for to ensure that you do not accidentally end up in a worse financial position than where you started.
Some key factors to keep in mind include:
- Legitimate lenders usually deduct service and administrative fees from the total loan amount and do not charge for these services upfront
- Loan offers that sound too good to be true, usually are
- Legitimate lenders usually outline their terms and conditions very clearly before entering into a contractual agreement
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