Beware unscrupulous online loan service providers. Fake loan companies with fake websites have been known to take victims for thousands of dollars. Most fake loan companies require applicants to pay fees in advance of securing the loan to cover items such as interest payments, legal fees or insurance fees. Once the “fees” are paid, the lender disappears, no loan is provided and victims end up in greater debt.
CONSUMER TIP: Before applying for a loan in person or online carefully research the company first. Make sure the business is a legitimate, reputable lender. Look up the company’s BBB Business Profile (bbb.org). Legitimate financial lenders will not require you to pay a fee for paperwork, administration fees, legal fees or insurance prior to getting a loan. Typically, the cost of such fees is included in the total loan amount and is not an additional sum that you must pay up front to secure the loan.