Janice Clemente, Investigations Manager
The Better Business Bureau offers these tips for spotting an advance fee loan scam:
• Pressure to act immediately. Advance fee loan scammers will try to get you to send money or give out personal information before you get any paperwork. Insist on receiving the necessary paperwork before deciding whether or not to apply for credit.
• Lenders not interested in your credit history. Lenders who don’t care about your credit record should be cause for concern. Ads that downplay bad credit and ads promising “fast money” or “guaranteed approval” often indicate a scam.
• A loan that is offered by phone. According to the FTC, it is illegal for companies doing business in the U.S. by phone to promise a loan or ask you to pay for it before they deliver.
When in doubt, contact your Better Business Bureau. The knowledgeable staff will help educate you on how to spot and avoid marketplace scams.
The Better Business Bureau encourages consumers who feel that they have been victimized by an advance fee loan scammer to contact the Federal Trade Commission at www.ftc.gov. They may also contact their local consumer protection agency and the Internet Crime Complaint Center at www.ic3.gov.