Warning of Fake Loan Scams on Facebook

Facebook.svgSuffolk Trading Standards are urging people to be wary of companies and individuals offering fake loans for a fee on Facebook.

Trading Standards are aware of fake offers being advertised by bogus profiles and groups, and as such would like Suffolk Facebook users to be on their guard.

People can be easily enticed by these offers, especially if they have a poor credit history, which makes it difficult for them to get credit through the normal routes.

The loan companies are known to asks clients to pay a fee upfront; prices have ranged from £35 to a staggering £2,000 or have handed over their bank details. Once the money has been paid, the company is never heard from again and the loan never materializes.

The advice is:

  • 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 on the telephone number below.

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.

For further advice and information call the Citizens Advice consumer helpline on 03454 04 05 06.

About suffolktradingstandards
Suffolk Trading Standards is working towards creating and fair and safe trading environment. By creating empowered consumers, that are armed with the knowledge to stop 'rogue traders'.

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