• Know how the loan scams work?

A scammer will send you an email or a letter, or chances are that you might see an advertisement on the TV, radio, newspaper, magazine or online and you respond to it. These types of ads will often use the names of large, reputable and well recognized lenders to keep them on the cleaner side. They will ask you to call a third party consultant who collects all the information from you including your social security number. During this telephonic conversation, they will always sound like you have been approved for the loan.

This consultant will now fax over some documents to the applicants. This is often called the welcome packet and directs the applicant to their website for entering further information. You will be asked to enter your bank information on their website.

Now, the applicants will be asked to wire some money as advance payment or a deposit through western union or send the payment through money gram to the consultant. Be always informed that a legitimate lender will never ask for upfront money. Anyone who asks you to put money upfront is not legit and it should ring a bell on you. Those who are victimized will never receive the loan money and the scammer disappears with the application fees and the down payments made by the applicants. You end up being scammed.

These are mostly a type of advance fee frauds preying on unwary consumers, taking their hard earned money for the promise of a loan or credit and leaving them in the hot water. These type of scammers will often try to impersonate some legitimate lenders to attract the consumers and falling for their bogus offer.

They will try to collect all personal information from you and this can often lead to your identity theft. The scammers get the chance to open new credit accounts in your name and running up a high bill which you will be forced to pay when the bill comes at your doorstep.

They will try to get a check from you so that they can use it to make counterfeit checks and use it in other scams.

And above all, theses scammers want your money. They will never leave that chance to make any kind of money that you can send to them.

The scammers are always on the hunt for people with bad credit. They know it very well that these types of people can be their first prey. They need money because of their hard times and they offer big hopes of getting approved for the loan.

Know more about loan scams by reading this article:

http://www.ftc.gov/bcp/conline/pubs/tmarkg/loans.shtm

Do you need remortgages? Visit this site: http://www.badcredit-mortgages.org.uk/.

This entry was posted on Wednesday, February 27th, 2008 at 7:11 pm and is filed under Loan. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.