Beware of Bogus "Easy Credit" Loans

Monday, December 8, 2003
Our agency has received numerous complaints from Texas consumers and warnings from other states about advance fee loan offers that promise easy terms and quick credit approval for almost any applicant. I want to caution consumers that these con artists may use company names that are very similar or even identical to the names of reputable banks or lending companies. They may also fax official-looking forms and questionnaires to their prospective "customers."

You should be aware that loans requiring the payment of a fee up front are illegal. Offers of easy credit to borrowers with low credit ratings should always be regarded with suspicion. If it sounds too good to be true, it probably is. If you are considering a debt consolidation loan, or are attempting to borrow money in spite of a poor credit history, you can contact the National Foundation for Credit Counseling at 1-800-388-2227 for a 24-hour automated listing of credit counseling offices. Or visit www.nfcc.org.

General Abbott's signature
Greg Abbott
Attorney General of Texas

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