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  2. Oct 23, 2024 · Watch out for warning signs. Unexpected calls, texts, letters, and emails asking if you want a loan are unlikely to be genuine. Look for spelling and grammar mistakes, as this can indicate a scam. Also, be wary of urgent offers requiring you to ‘act now’.

  3. Aug 29, 2023 · Loans demanding “processing,” “insurance” or any fees before approval are a scam. A lender asking for payment before it’s processed your application is a scammer looking for a quick buck. You’re guaranteed approval.

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  4. Loan fee fraud is when scammers trick you into paying a fee for a loan which you won't ever receive. Fraudsters often advertise fake loans online or create false loan comparison sites and pounce when somebody responds wanting to borrow some cash. They may even contact you out of the blue.

    • Advance fee fraud. Perhaps the most common of loan scams are those that require you to pay a fee before your application is processed. Legitimate institutions will never request the processing fee upfront.
    • Phishing and smishing loan scams. Phishing (through email) and smishing (through text) scams require you to divulge your personal information. This will include requesting income information, sensitive banking information, and other security questions that will allow the scammers access to your financial profiles.
    • Universal Credit loan scams. Universal Credit provides recipients with a streamlined payment that includes all their benefits. This allows recipients to apply for finance a little more easily.
    • Clone firms. Dealing with a clone firm might seem like dealing with the real thing. These companies either impersonate a legitimate company or pretend to be the legitimate company’s agent.
  5. Unfortunately, it can be tough getting your money back if you’ve fallen victim to a loan scam. The first step is to contact the FCA on 0800 111 6768 or reporting the fraud through their website. You can also call Action Fraud on 0300 123 2040 to report any suspected fraudulent activity.

  6. Feb 1, 2023 · Fortunately, you can do a little digging before you apply for a loan or accept a loan offer. That way, you’ll know you’re dealing with a legitimate lender and not a fraudster. So before you submit your loan application, follow these steps to make sure you’re applying with a legitimate loan company.

  7. May 8, 2022 · In this guide: 1. Types of loan scam. 2. Spot a loan scam. 3. What to do after a scam. 4. Regulation. 5. Summary. What are the common types of loan scam? There are several types of loan scams, but the purpose of an individual scam will usually fall into one of these categories: Demanding upfront fees ahead of a loan.

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