She needed $10,000 to pay off her credit cards and found someone ready to help.

The lender wanted the Oceanside woman’s bank account information so he could deposit two checks.

Then he asked her to send some of the money back as “proof” she would make payments on the loan.

The checks turned out to be fake. The woman lost $1,950.

Better Business Bureau Scam Tracker complaints show bogus online lenders taking hundreds and thousands in upfront money from unsuspecting borrowers.
https://bbb.org/scamtracker/lookupscam.

The lenders can show up in online searches or call you with an alluring offer.

They promise a lot of money at low interest rates with little or no background checks, not even a credit check.

But first, you need to pay a processing, application, insurance or some other fee to get the money.

One complaint shows a man promised a $10,000 loan after he paid a $175 wire transfer fee. Then there was a $425 tax payment necessary because “it was an unsecured loan.”

The man paid both. There was no loan. He lost nearly $600.

Advance fee loan scams target people with bad credit who can’t get conventional loans and might expect to pay higher fees. 

While licensed lenders may charge an origination or small application fee, most do not require payment before producing the loan funds. They disclose the fees and deduct them from the loan amount or include them in the loan itself. 

Protect yourself. 

If looking for a personal loan:

-Don’t pay for a promise. It’s illegal for lenders to call and promise a loan before you apply.
-Say NO to large upfront fees
-Your bank account information is NOT necessary before you’ve secured a loan
-Check the lender name online and at bbb.org for reviews and complaints
https://bbb.org/.
-Lenders must be licensed with your state. Check California’s Department of Financial Protection and Innovation to make sure.
https://dfpi.ca.gov/.

Avoid scams by hiring BBB Accredited Businesses at bbb.org and see all of my scam protections at joeknowsbetter.com.
https://bbb.org/local/1126/joe-knows-better. 

Crédito de la foto: Pixabay.com