Beware of Advance Fee Loan Scams
Posted by Bob Blick in Loans, tags: false loan promises, loan scamsThe FDIC has observed a significant increase in the number of unsolicited e-mails (”spam”) advertising mortgage refinancing, debt consolidation and limitation, small business loans, and special loan programs for veterans and minorities. While some of these e-mails may advertise legitimate loan programs and lenders, advance fee loan scams are becoming more prevalent.
Advance fee loan scams prey on consumers who may be under financial duress and may be seeking quick and easy loan approval and funding. The scam typically involves the lender making false promises to arrange for a loan in return for fees paid upfront by the loan applicant. Scam artists may even design Web sites and online loan applications giving the appearance that the company is legitimate.
The following are warning signs that may indicate a loan offer is not legitimate:
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