Consumers have reported losing substantial sums of money responding to advertisements that “guarantee” loans to people, often online. Consumers complete credit applications and are told the loan (usually from $5,000 to $100,000) has been approved and the promised funds will be received once a fee is paid. After payment, the loan is never received as promised.
The London Police Service would like to remind citizens that it is illegal for a company to charge a fee in advance to obtain a loan, even if that fee is disguised as the first or last month’s payment. Watch for claims of “guaranteed” loans even if you have bad credit, no credit, or a bankruptcy, and demands that you wire or send money before you can have a loan offer confirmed in writing.