Loan repayment fraud targets people who may have taken out loans.
The fraudsters often use a company name that is similar to an existing loan company. They send out letters claiming the recipient has missed a repayment deadline and now owe their original debt plus a ‘penalty charge’ of more money.
The victim pays the ‘debt’ to the fraudsters, to find out later that they still owe the full amount to their outstanding loan company.
Protect yourself against loan repayment fraud
- Check your original paperwork – contact the company you took the loan from to check repayment dates.
- Ask questions – if someone is legitimate they won’t pressurise you or be elusive.
- Don’t stay silent – if you’ve been targeted by a fraudster and lost money, contact Action Fraud.
Fraud has been committed if money has been lost.
If fraud has been committed, report it to Action Fraud.