Loan Consultant Scam

One scam that people with bad credit who are looking for loans need to be aware of is the loan consultant scam.

In this fraud, a con artist claims to be a loan consultant, an expert who will get a person a loan if they pay a fee upfront. The borrower is told to wire money to the loan consultant or send them a credit card payment.

Not surprisingly the person never gets the loan. The consultant takes the upfront or advance fee and pockets it.

There is No Such Thing As A Loan Consultant

Paying a fee to a loan consultant is a waste of money because there is no such thing as a loan consultant. There is no consultant who can help you get a loan or arrange financing.

There are mortgage brokers and similar professional who can arrange loans for people. Such professionals get paid with percentages of the loans they arrange not through upfront fees.

The upfront fee is a scam because no legitimate lender will ask for money upfront. The loan is usually paid off through the payments you make later.

Never Wire Money An Upfront Fee

No legitimate business only accepts payment through Western Union, or Moneygram. The only reason a person wants payment through such a method is probably because they are running a scam. Crooks use wires because it’s harder for the police to trace them. A legitimate business will give you a number of alternatives to make payments.

Don’t Believe Logos

Scam artists are very clever criminals who are capable of hijacking the tools of legitimate businesses. Many fraudulent requests for loan applications will contain logos of big banks and other reputable lending institutions.

A letter that asks for an Upfront or Advance Fee for a loan is always a fraud no matter who it comes from. Remember a con artist can and will tell you anything to get you to send them your money. A con artist can easily say that they are working with anybody or working for any bank.

Logos and letterhead from big banks or legitimate don’t mean a thing. Con artists can easily download the logos and letterhead for these institutions and put them on their fraudulent materials. A “loan consultant” with a computer can easily make it look like he’s working with big banks when he has no connection with them.

Avoid Want Ads

Most of the loan consultant scams advertise in smaller newspapers, free newspapers and Craigslist. You should be leery of any loan offer that’s advertised in such places.

Never respond to an advertisement for a loan unless it identifies what institution is making the loan and gives the terms and interest rate of the loan. If the advertisement doesn’t list these things there is probably something wrong with it.

Rely On Yourself

You should be able to find the loans you need without the services of a loan consultant. Instead of listening to the loan consultant go online yourself and search for loan offers. Anybody should be albe to do this for themselves.