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.