Consumers Scammed by Easy-Credit Loan Officers

Tuesday, July 8, 2003
We have reviewed dozens of complaints in recent weeks from consumers who have been scammed by easy-credit loan offers. Ads promise that you can borrow regardless of your credit history, at a reasonable interest rate. ("Need a loan? Bad Credit? NO PROBLEM! Call 1-800-XXX-XXXX" or "FINANCIAL SERVICES AVAILABLE: Good or bad credit welcome. Specialize in business and personal loans. No fees, bankcruptcy accepted. 1-866-XXX-XXXX.") The consumer is immediately approved for a loan, then learns that before the loan can be funded, a "fee" or "deposit" must be paid. The required advance payment is the tip-off. The loan may never materialize and the deposit may be lost.

Consumers are cautioned that a legitimate lending company is very unlikely to offer fast approval and low interest to a person with a troubled credit history. The demand for an advance fee is a warning. Consumers should also be wary if they are instructed to wire money or otherwise avoid using the US Mail. As always, consumers should be cautious about supplying their personal and financial information to any company or individual that they know very little about.

General Abbott's signature
Greg Abbott
Attorney General of Texas

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