Hamilton

Don't fall for advance fee loan scams, Norfolk police say

Norfolk County OPP are warning people about an advance fee loan scam where the loaners say they approve everyone.
Norfolk County OPP are warning of a loan scam. (CBC)

Norfolk County OPP are warning people about an advance fee loan scam where the lenders say they approve everyone.

A concerned resident applied for a loan online, police say, and paid $1,500 to obtain the loan. They corresponded with the supposed lender in writing, but didn't receive the loan.

The scam advertises loans for everyone, regardless of credit history, as long as the person getting the loan pays a fee upfront, police say. 

"The scam artists often impersonate legitimate lenders to entice consumers into falling for their offer," police say in a media release.

"Legitimate lenders may guarantee firm offers of credit to 'credit-worthy' consumers, but first, they evaluate the consumer's credit worthiness and confirm the information in the application."

Police say these scammers usually have applicants send fees via a money transfer service, and have them sent to an individual, not a business. Legitimate lenders don't do that.

The scammers also ask applicants to use a "password code" with the payment.

Legitimate lenders also don't guarantee a loan without an application, police say, or checking someone's credit status.

"Don't pay for the promise of a loan," the release says. "Ignore any ad or hang up on any caller that guarantees a loan in exchange for a fee in advance."

Police also warn not to give out personal information over the phone. That includes credit or bank account information, or social insurance number.

 

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