John North
Dayton BBB
Scammers promoting advance-fee loans target people down on their luck and desperate for money. They’re advertised in local publications and online through professional-looking websites and classified sites using attractive terms such as “easy credit” and “guaranteed.”
Generally, advance-fee loan websites require victims to complete loan applications requesting information, such as bank account and Social Security numbers. Victims are told they’re approved for loans and just need to pay advance-fees, ranging up to thousands of dollars. Those who pay never get the promised loans and are sometimes tricked into giving scammers even more money.
Your Better Business Bureau advises you beware of lenders:
Requesting upfront fees. You may be required to pay fees, but not before the lender is identified and the application is completed. Be leery if you're asked to wire money or send a money order.
Failing to provide contact information, including physical addresses and phone numbers. They may be trying to avoid law enforcement.
Promising loans regwardless of credit history. Legitimate lenders never guarantee or say you're likely to get a loan before you apply, especially if you have bad credit or no credit.
Operating outside the U.S. These schemers use phony U.S. addresses or P.O. boxes.
Pressuring you to act immediately. Bogus lenders will try to get your money or personal information before giving you paperwork. Verify the company's credibility before providing information. Be sure to get written loan documentation.
Using similar-sounding names to well-known companies. Phony companies use names that sound like well-known or respected organizations, create legitimate-looking websites and produce forged paperwork or pay people who are fake references.
Advance-fee loan offers are tempting, but proceed with caution and do your homework. Be sure lenders are registered by checking with the attorney general’s office. You can also check potential lenders out with your BBB. Visit www.bbb.org or call (937) 222-5825 or (800) 776-5301.
John North is president and CEO of the Better Business Bureau.
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