Avoiding Advance Fee Loan Scams

News

The Better Business Bureau is warning consumers that an old -- and devastating -- scam is back in a big way. It's called an "advance-fee loan scam." The "advance-fee loan" ads appear in newspapers, on telephone poles, and the Internet. Telemarketers also hawk advance-fee loans.

"A telemarketer promised Jennifer P. a low-interest credit card with no annual fee. All she had to do was send a $199 processing fee and the offer was guaranteed. The one-day special even included her choice of a laptop computer or satellite dish. The telemarketer was friendly and persistent, and Jennifer fell for it. She waited weeks and never received her credit card. She tried to contact the company but it had disappeared."

Don't fall for this scam and know how to spot it.

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Comments

  • 0
    Haward
    Great article, I enjoyed reading it, especially the part on how to spot the scam.
  • 0
    Paul
    I'm from a major city Canada and can't say that I recall ever seeing an advertisement that simply reeks of desperation, as the one above blatantly does.  It stinks that people are being suckered into this style of marketing, however, if those targeted people had conducted a grade four level of Due Diligence after the pitch was made, their troubles could most likely have been avoided.

    My two cents..
  • 0
    Polly
    I applied for a loan with Stalworth Financial Svc Cust Rep (Patty ). I was informed I had been approved for a 8,000.00 loan, but I had to wire 4 months payments in advance to secure the loan, which I did on 11/30/07. I was told the loan would be wire into my account on Monday 12/03/07 it never arrived. DO NOT GIVE ANY INFORMATION TO THIS COMPANY THEY USE PHONE NUMBERS 866-399-4148 EXT 2. 347-562-2648 AND 646-536-9090
  • 0
    jenn
    Has anyone ever heard of The Onyx Group?  They called me yesterday (12/11/07) and said that I was approved for the $15,000 personal loan that I had applied for 2 months ago at a generic loan finder website.  I liked the terms and was reaching to get a pen and either got hung up on,  or hung up on them on accident.  They did not call back and there was no number on the caller ID to call them back.  But,  the previous call that I had missed on my cell was 1-347-562-2648.  Is this same company as above only with a new fake name?
  • 0
    Bonnie
    Beware, now they call themself PRINCIPAL PLUS FINANCIAL. The perosn who called me was Debra King. Sounded so professional, but when I was told I had to secure my loan with $800.00 I got suspicious. I investegated the area code 347 and it belongs to New York. The letterhead of the company says they are in Illinois. Stay away from this company it is a scam.
  • 0
    jewlee1982
    I got a call from this number and they are operating under the name Caldera Financial. I got approved for a 10,000 loan but I would have to send $1350 western union to a place in Canada after I had already sent all my financial and personal info they now have but they do not have my money.  Stupid f#$%%! I am so glad I came here and googled this number.
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