Educational Consumer Tips

Advance Fee Brokers

Author: Better Business Bureau
Category: Finance

According to the Federal Trade Commission (FTC), it is illegal for companies doing business by phone in the US to promise a loan and ask for a payment before they deliver. BBB urges caution when solicited by a company who promises a loan in exchange for a fee in advance. Consumers are typically given instructions to send the fee by wire transfer to a location outside of the US, and they have little recourse if there is a problem with the transaction. Consumers may report their experience with advanced fee loan companies to the FTC by calling 877-382-4357 and PhoneBusters by calling 888-495-8501. PhoneBusters is the Canadian Anti-Fraud Call Center. The call center plays a vital role in the collection and dissemination of victim evidence, statistics, and documentation which are made available to outside law enforcement agencies.