Disclaimer: Consumer legal fundings and advances are not loans under applicable financing laws. Rockpoint’s products are non-recourse, meaning if you don’t win your case, you don’t have to pay us back. Receiving financial support in connection with a legal case is typically (and oftentimes incorrectly) referred to as a “lawsuit loan” or “loan.” Therefore, for the ease of search references, these terms may be used in this context to refer to our funding products, but we maintain our separateness from consumer loan products in all legal aspects.
Sadly, Americans fall prey to foreign money and inheritance scams every year. These scams give every legitimate probate advance service, including Rockpoint Probate Funding, a bad name.
If you and your family are going through the probate process now or planning to work through it soon, it is important to know how to avoid scams in probate lending.
How Do Probate Lending Scams Work?
Wouldn’t it be nice if you discovered that a rich uncle you didn’t even know about died and left behind a large sum of money for you? Of course, it would. It may sound too good to be true — and that’s because it is too good to be true for many people.
Still, people continue to fall for this scam out of wishful thinking. They may be contacted by scammers who tell them about a “rich uncle” who died and all the money they’re eligible to collect.
However, this scam comes with one big catch: For Americans to receive their inheritances, scammers say they must pay a fee first to release the money. Scammers typically tell their victims this fee is necessary for the following reasons:
- Government regulations
- Tax obligations
- Banking restrictions
However, the problem is that once a victim sends a scammer money to cover the fee, the scammer will usually turn around and tell them about another fee that has come up. This act continues until a victim figures out what’s going on after paying multiple fees or simply doesn’t have any more money to send to a scammer.
Either way, victims of this scam never receive the inheritances initially promised because those inheritances don’t exist.
What Are Probate Lending Scam Warning Signs?
Despite the prevalence of inheritance scams in the U.S., many Americans still don’t know how to avoid scams in probate lending. An effective way to avoid these scams is to identify common warning signs.
Here are a few to be aware of:
- You receive a phone call, email, or letter in the mail out of nowhere about an inheritance that a relative you’ve never heard of before left for you.
- You notice typos and other errors in an email or letter sent to you about a mysterious inheritance.
- You find that the phone calls, emails, or letters you’re receiving about an inheritance originate from another country, such as Nigeria, Ivory Coast, or even Canada.
- You feel like the person contacting you about an inheritance is pushy and determined to convince you to collect an inheritance as soon as possible.
- You tell the person reaching out to you about an inheritance that you’d like to speak with a lawyer before proceeding and they urge you not to.
If you ever find yourself in a situation where a scammer might be targeting you, take a step back and assess it fully. If something doesn’t seem quite right, trust your gut and cut off contact with a suspected scammer.
How Can You Avoid Probate Lending Scams?
Knowing how to spot probate lending scam warning signs is only half the battle. You also need to know how to avoid scams in probate lending before they wrap their tentacles around you and pull you in.
Here are several steps you can take to avoid these types of scams:
- Delete any emails or tear up any letters you receive that sound like probate lending scams without engaging with scammers any further.
- Refuse to provide personal information or financial records to people you don’t know.
- Research your family history if you’re unsure whether you have a “rich uncle.”
- Speak with other family members to see whether they’ve faced similar scams.
If you really did lose a loved one recently, you can also ask one of the legitimate probate lenders in the U.S. to provide you with probate funding. These lenders won’t use predatory lending tactics to rip you off.
Instead, they’ll deliver probate loans with transparent terms to put your mind at ease. They’ll also allow you to consult an attorney if you’re concerned about how probate works so you can consider if a probate advance is right for you.
What Should You Do If You Fall for a Probate Lending Scam?
Even though organizations like the FTC have worked tirelessly to advise Americans about probate lending scams, they haven’t gone away completely. You might fall for one if a scammer is good enough at what they do.
In this case, you should:
- Stop communicating with a scammer as soon as you realize what’s happening.
- Call the police to file a report and document any cash or other assets you’ve transferred to a scammer.
- File a report with the FTC’s fraud prevention team.
Sadly, probate lending scam victims don’t always receive enough legal protection in the aftermath of scams. But you can stop a bad situation from becoming even worse.
Call Rockpoint Probate Funding To Steer Clear of Probate Lending Scams
Now that you know how to avoid scams in probate lending, you can reduce the chances of falling victim to one. If you need to access an inheritance, try applying for a probate advance through Rockpoint Probate Funding instead. We’re a legitimate lender that can extend non-recourse funding to those in line to collect inheritances from loved ones.
We can also deliver advice on other probate-related topics, such as whether you can apply for a home equity loan for an inherited home. Contact us at (888) 263-8588 to discuss your needs with a Rockpoint representative.
