National charity Citizens Advice is warning people to beware of companies offering fake loans for a fee. The companies often prey on people who are already in debt and desperate for a way out.
Citizens Advice top tips on fake loans:
• Never pay money up front
• Never give out bank account details to cold callers
• Be very wary of cold calls offering loans, and internet sites offering quick and easy credit
• If it looks too good to be true it usually is
• If you need credit, shop around, use a trusted source and always check the paperwork
• If you’ve already paid money up front for a non-existent loan, inform Trading Standards (www.tradingstandards.gov.uk). The Consumer Credit Act says that all but £5 of any brokerage fees should be refunded if no loan is taken up within 6 months.
Read more on the Citizens Advice website
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To report a fraud, call Action Fraud on 0300 123 2040 or use our online fraud reporting tool.