BBB serving Central Ontario is warning consumers about an influx of advance fee loan scam reports throughout the Tri-City region. They received reports from consumers suggesting that a number of advance fee loan companies operating in Kitchener, Waterloo, and Newmarket, are offering loans for an advance fee.
Illegal to request an upfront fee
Consumers state that they have applied for loans online and after paying thousands of dollars in deposits or “insurance”, the loans promised by the companies were allegedly never received. Consumers are encouraged to be cautious. Advance fee loan schemes target individuals who are experiencing difficulty in obtaining cash or credit. In Ontario, it is illegal for a company to request an upfront fee prior to obtaining a loan.
Read more at BBB.
This article is summarized by Canadian Fraud News Inc.
Marina Burghard writes for Canadian Fraud News about fraud-related cases, whistleblower, jurisdiction, identity theft, consumer protection, etc. – essentially about scams and how to protect yourself against this kind of fraudulent criminal behavior. She holds a Master’s degree in Political Science where her interest in criminology grew. Besides fraud, Marina’s scientific interest lies in terrorism, extremism and how to deal with it as a society.