Denbighshire Trading Standards team is warning consumers to be on their guard when applying for loans.
The team has recently received information regarding the payment of “arrangement fees” for loan applications. It is perfectly legal for legitimate companies to request application arrangement fees, but it appears that there are “fake” loan companies taking advantage of unwary consumers.
The consumers are being contacted after entering their details onto various comparison websites whilst looking for loans.
Barry Jackson of Denbighshire Trading Standards, said: “Out of the blue people may receive a call guaranteeing them a loan, but there is an arrangement fee that has to be paid up front. These fees can vary from around £50 up to and beyond £200. The consumer is usually advised that they will receive this fee refunded when the loan application comes through.
“The information identifies a number of payment methods including “UKASH”, a voucher system and “Western Union” money transfers. In all of the known cases the money that is sent for the arrangement fee results in no loan materialising and the loss of the money paid out. The “Fake” loan company in some cases have requested further payments until the consumer becomes suspicious, all contact with the company then suddenly ends.
“In all cases the money simply disappears and the fake company cannot be traced, making it impossible for action to be taken. It is believed that the “fake” companies operate from outside the UK.
Ukash has issued an alert on its website. Details can be found at www.ukash.com
If you have experienced such a problem, we request that you to register the details with Action Fraud on www.actionfraud.org.uk or telephone 0300 123 2040.
