Educational Consumer Tips
Author: Better Business Bureau
The following is BBB general information and is not intended as a report on any specific company.
The BBB has witnessed a national trend of advance fee loan and credit card scams. These scams target individuals who are having trouble obtaining cash or credit. Customers are lured by advertisements and direct mail pieces promising "guaranteed" loans or credit cards- regardless of credit history - for advance fees running between $50 and several hundred dollars. However, you must pay an advance fee before obtaining the "loan" or "credit card". These so-called loan brokers don't lend money directly; they claim to act as money finders and ask for an advance fee in order to prepare a loan application and present it to prospective lenders. But these firms cannot guarantee loans, despite their promises of unlimited funding sources. In many cases, brokers fraudulently pocket advance fees, make no effort to find the funds promised, and the customer loses money.
Recognizing Advance Fee Loan Scams
*Never give your credit card number, bank account information or Social Security Number out over the telephone or Internet unless you know with whom you are doing business. If you do not have the offer confirmed in writing or in hand and are asked to pay, DO NOT DO IT! It is fraud and it is against the law.
If you cannot obtain money or credit from conventional sources close to home - such as banks and credit unions - it is unlikely to be found through a classified advertisement, a telemarketing "cold call," a "900" number, or a flyer sent in the mail. Ask yourself: why would far-away "lenders" be more likely than local financial institutions to provide you with money? And remember: a company's money back guarantee is no good if the company closes it doors.
If you feel you have been subject to an advance fee loan scam, contact:
This information is general in nature, and is not a Business Review on any particular company, product or service.