Advance Fee Loan Scams
Loans that require an advance fee in order to achieve financing typically prey on the weakest members of society. These are usually the people who are the most desperate for the loan, which is unfortunate. These dishonest companies usually guarantee large unsecured personal loans to individuals that are not able to achieve approval for a loan via conventional lending institutions (banks, credit unions, etc.) or go after those with minimal financial knowledge. Equipped with a very aggressive but smooth pitch and an absolute lack of ethics, these scam artists typically swindle amounts that vary from a few hundred dollars to several thousand from unwary applicants. While legitimate lenders may charge you a small amount to process your application and cover the cost of checking your credit, the fees generally are taken from the amount borrowed. Legitimate offers of credit do not require an up-front payment. Making the matter even worse, these con-artists usually obtain enough personal info from their victims opening them up to identity theft. The advice below will help you avoid loan scams.