Scam warning on loan companies

PEOPLE in Warrington are being warned to steer clear of “scam” loan companies who may take payments and then disappear with their money.
Warrington’s Trading Standards team says these loan companies may want upfront fees and are not interested in people’s credit history – because they may take a payment then disappear with the money.
They are urging people to be extra careful when dealing with loan companies or taking cold calls.
The Office of Fair Trading has reported a 50 per cent year-on-year rise in complaints about loan scams, particularly credit applications which involve the consumer sending upfront fees through money transfer companies.
Trading Standards advise people to be cautious and to research the business offering the loan – checking for a landline phone number and a physical address and ask for information in writing.
They also say people should check that the company has a credit license on the Consumer Credit Register at www.oft.gov.uk/ConsumerCreditRegister
Cllr David Keane (pictured), the borough council’s executive member for environment and public protection, said: “It is vital people are on their guard when it comes to loan companies as there are unfortunately a number of fraudulent organisations out there.
“Research the company you are taking the loan from and if you are uncertain about them at all make sure seek advice.”
Further information and advice about loan scams is available from the Illegal Money Lending Team on 0300 555 2222 or email [email protected].