Alert over loans scam
BRITISH consumers are being tricked out of thousands of pounds by professional criminals operating a new scam from Canada.
The Office of Fair trading today warned people to be wary of advertisements that have appeared in local newspapers offering fast loans regardless of credit history.
The adverts, which have a freephone number to call, are usually placed in the classified sections of free or local newspapers.
Consumers who respond are told their loan has been agreed but before they can have the money they must pay a fee to cover insurance on the loan. They are asked to pay this fee by money order via Western Union or Money Gram. Once the fee is paid the consumer never hears from the company again and the loan is never received. The OFT says some victims who have lost as much as £4,000.
The OFT is working with the authorities in Canada to take action against these fraudsters and is urging consumers who have been contacted in this scam to report it to the OFT by calling 08457 22 44 99 or by emailing [email protected]. The OFT is also concerned that organised criminal gangs may be using the personal details collected from victims of this scam to commit further fraud.
John Vickers, OFT Chairman, said: 'Any newspapers who are approached to put adverts of this sort in their papers should immediately contact the OFT and give details of who contacted them and the advert they attempted to place.'