SCAM: Advance Fee Loans |
Posted: October 24, 2017 |
Advance fee loans are a popular scam. Quite simple to understand, a person seeking a loan is promised that a suitable loan will be found, but a fee must be sent first. The loan shark receives the fee and the loan application is denied - end of story. To better understand the advance fee loan scam, I suggest you read this article. When a person or a family is struggling to pay their bills and manage their debt load, they become particularly vulnerable to certain types of predators. Of course every predator makes it his business to know his prey. Of great benefit to the predator is the fact that people who are looking for a solution to desperate financial times can easily be led to believe something that they otherwise might not. When people are looking for a solution to a problem, and they think they have found it, they tend to believe what they want to believe. I found a great post on this website https://www.loanadvisor.sg/ where you can learn if your fee loan is a scam or not. So who is this predator I am talking about? Although his name is not known, his advance fee loans are. This is a scam that is well known and consumers need not fall for it. It is interesting that several sources I looked at have identified a majority of these loan offers being made by Canadians into the U.S. A tip from the Canadian authorities is to ask yourself a question, "If I am having trouble getting loan approval in the U.S., why would I expect a Canadian firm to loan me the money?" The predator's mode of operation is well known. He merely posts adds in legitimate media sources such as classified sections of daily and weekly newspapers and magazines. The loans also are promoted through direct mail, radio, telemarketers and cable TV spots. Toll free numbers (800, 866, 877) are common but you might keep your eye open for these Canadian extensions: 416, 646, 905, or 705. The fact that the ad is in a legitimate media outlet does not guarantee that the ad is trustworthy. [Whether this should be the case would be an interesting discussion in itself.] The ad will be offering loans anywhere from $2000 to $500,000. Primary targets include those who have trouble getting loan approval elsewhere, maybe due to a poor credit rating. Typical wording might be, "Had credit problems? Garnishments, repossessions, or even bankruptcy? No problem! We can loan you thousands of dollars at below-market interest rates!" When a person responds to such an ad, they will be assured, even guaranteed that the desired loan will be available. The broker (predator) explains the loan process and then informs the person that an up front fee of $150 to $2000 is necessary. Of course there is a promise that the fee will be returned if the loan application is unsuccessful. Typically you would be instructed to send the fee quickly via Western Union. They will have you send the money to an individual, or they might ask you to use a "password code" - thus hiding their identity. After the advance loan fee is paid, the loan application will be rejected and there will be no refund. By the time you realize what has happened, you find you can no longer contact the company. In those situations where a company can be located, they will take the position that no refund was due because it was a credit referral agency that rejected the application, and not the loan company itself. Advance fee loans are not legal. Although most loans will have some type of application fee, it does not have to be paid until the loan has been approved. One man in Ohio that lost an advance fee of $250 said it was hard to believe that people could be so blatantly dishonest. People can be that dishonest and the Internet is loaded with various kinds of scams. When a person is given the opportunity to conduct business while remaining anonymous, their sin nature begins to flourish in a new way.
|
||||||||||||||||||||||||||||||||||||||||||
|