Council issue warning over “worrying increase” in loan fee scams

A warning has been issued after reports of a loan scam targeting members of the public.

The FCA’s Financial Lives research reveals that 14.6 million people are finding it difficult to cope financially.

With many people struggling to make ends meet with the rising cost of living, fraudsters are taking advantage of those who are susceptible to scams such as loan fee fraud.

This involves the scammers ask the victim to pay an upfront fee, however they never receive the payment.

Now, it’s even more important to take a moment to pause if you are looking for a loan.

Pause and do the 3-step check before you make any decision and avoid the scammers.

• Cold called?
• Asked to pay an upfront fee?
• Pressured to pay quickly or unusually?

If any of these ring true then stop and protect yourself from loan fee fraud.

Roger Mapleson, Trading Standards and Licensing Lead, said, “As more and more people are beginning to struggle financially due to the high cost of living there’s a worrying increase in the amount of scammers that are looking to prey on those most vulnerable.

“Please be careful and if you are considering taking a loan please approach a registered lender or consider using a Credit Union such as the one based in Wrexham.”

You can check if a company offering a loan is legitimate by looking at the Financial Services Register