Be Scam Aware - Potential Loan Scam

Central

Bedfordshire

Scam Aware

Central Bedfordshire Council’s Trading Standards team is warning consumers to be aware of potential loan scams.

We have had a report from a consumer who had applied for a loan with a company called Lending Solutions Ltd and paid a £95 admin fee upfront. The following day the consumer received a call claiming the application had been approved and the loan amount was ready to be transferred into their account, subject to part payment of the first loan repayment. The consumer duly paid this amount so that the loan amount could be transferred. However, the next day, the consumer received another call from the loan company requesting a further payment which acted as a release fee "for the tax office". Again, the consumer paid the amount requested, but has yet still to receive the agreed loan amount from the company.

Based on the information provided and the business practices described we believe this has all the hallmarks of a potential scam and we would advise anyone to act with extreme caution when applying for loans.

Our advice to consumers is that a legitimate loan company would never request an advance payment (i.e. admin or release fee) prior to you receiving the loan amount. Never be intimidated into making a rash decision just because claims of prompt payment of such fees will speed up the transfer of funds for example, and always take a moment to ask yourself why you are paying money upfront before you have even received the loan amount and why such "fees" were not mentioned at the beginning of the loan application.

If you have any information about suspect rogue traders or would like to report a possible scam please initially contact Consumer Direct on 08454 04 05 06, in order so that all relevant regulatory authorities can be notified.

In the meantime, please visit our website www.centralbedfordshire.gov.uk/bescamaware for advice and guidance on how to spot a scam and how to avoid becoming a victim.

Trading Standards

(Community Safety and Public Protection)

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Central Bedfordshire Council Priory House, Monks Walk, Chicksands, Shefford, Bedfordshire, SG17 5TQ

Telephone: 0300 300 8136 Email: trading.standards@centralbedfordshire.gov.uk

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