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Warning of loan company voucher scam

Trading Standards in Wales are warning people of cold calls from people claiming to represent a loan company.

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The scam involves the caller telling a resident they will have no problem in being granted a loan but in order to access the money they need to pay a fee up front to buy UKASH vouchers.

The fraudsters then tell the victims by paying this upfront fee will allow them to transfer the money.

Merthyr Tydfil Trading Standards have issued the following advice:

  • Don’t transfer money to loan companies using money transfer services when applying for loans.
  • Don’t go ahead with a loan if a company approves it and then demands a fee before you get the money.
  • Do be cautious if a loan company cold-calls you.
  • Do some research about the business offering the loan – look for correct phone numbers and physical addresses and ask for information in writing.

Craig Rushton, Trading Standards officer at Merthyr Tydfil Council, said: “In the current economic climate individuals are finding it difficult to obtain credit and criminals are capitalising on this using devious means and targeting vulnerable people

“Consumers are advised never to transfer money using services such as UKASH or Western Union when taking out loans and to be always be on your guard if someone cold calls you and offers you a loan.”

For further information visit the Merthyr Tydfil Trading Standards website.

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To report a fraud, call Action Fraud on 0300 123 2040 or use our online fraud reporting tool.

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