Office of Consumer Affairs
Consumer Factsheet
 

Advance Fee Loan Scams

Advance Fee loan scams generally involve the promise of easy credit regardless of one’s credit history.  Consumers receive unsolicited telephone calls, apply over the Internet or respond to newspaper/e-mail advertisements for “guaranteed” loans and all the consumer has to do is complete a loan application and pay a fee in advance for the loan.

Advance Fee loan scammers direct consumers to complete loan applications and then wire money or send a check or authorize an automatic withdrawal from their bank account in order to receive the loan.  Consumers are told by the scammers this money is needed for a variety of reasons such as fees to process the loan or as a first payment towards the loan, or as security on the loan. 

After sending off the money, the consumer waits and waits, but the loan is NEVER received and any refund attempt to get your money back is futile.

How to Avoid Becoming a Victim of Advance Fee Loans

$  Ignore any ad – or hang up on any caller that “guarantees” a loan in exchange for a fee in advance.  Legitimate lenders will never guarantee you a loan because it is based upon your credit history and ability to repay the loan.

$  Never wire money or send a money order for a loan.  Once you wire money you have little recourse to get it back if there is a problem.

$  Investigate the company. Check if complaints have been filed against the company by contacting: