Are You the Target of an Advance Fee Loan Scam (online only)
By Louisiana Attorney General's Office
If you’re looking for a loan but don’t believe you’ll qualify because of a poor credit history you may be tempted to respond to ads that guarantee loans regardless of your credit history. The trick to these offers is that when you apply for the loan you are told you have to pay a fee in advance of receiving the loan. According to the Federal Trade Commission (FTC) this could be an indication of a scam.
The Louisiana Attorney General’s Office and the FTC suggest the following may indicate an advance-fee loan scam:
• A lender who isn’t interested in your credit history. Ads that feature phrases such as “Bad Credit? No Problem!” often indicates a scam.
• Fees that are not disclosed clearly or prominently. A phony lender may say you’re approved for a loan but demand a fee before you can get the money. Legitimate lenders often charge application or credit report fees, but these fees are clearly disclosed.
• A loan that is offered by phone.
• A lender who uses a name similar to that of an established, legitimate lender.
• A lender who asks you to wire money or pay an individual. Legitimate lenders do not pressure customers to wire funds.
If you believe you may have been the victim of an advance-fee loan scam, please contact the Louisiana Attorney General’s Office at 800-351-4889 or www.agbuddycaldwell.com. You should also report the activity to the Federal Trade Commission at 877-382-4357 or www.ftc.gov.