Recent Publications By:

BRAD N. SOMMER, ESQ.

BNS@SommerLawGroup.com

 

Advance Fee Loan Scams That Can Leave You In The Red

 

Are you a real estate investor searching for a quick, “no hassle” business loan? Or a small business tempted by advertisements promising loans regardless of your previous credit history? If so, you represent the target group for con artists who are luring consumers into advance fee loans with false promises that will put you in the red.

 

What are advance fee loan scams?

Advance fee loans require an up front payment for a personal or small business loan. This upfront payment may be termed as an “application payment” or “processing fee.” However, these disguises are nothing more than a scam. In these cases, you never receive your guaranteed loan, never hear from the company again, and discover from the third party creditor that you are ineligible. These advance fee loan scam artists use classified advertisements, telephone calls, and the internet to lure unsuspecting consumers in before charging an upfront fee for a loan that never materializes.

 

Signs you may be getting scammed.

-The company tells you that your loan approval is “guaranteed.” Normally lenders do not make the promise of a loan without first reviewing your financial history, ability to repay, and general financial condition.

-Upfront fees payable to an individual or third party are required. Typically, after the loan has been approved, loan fees are paid to a business.

-The loan offer is made to you over the phone and you are asked to make the upfront payment before the loan is delivered. In the United States, it is illegal for loan companies to demand collection of a payment before the loan as been delivered. Payment cannot be requested until the money has been in your hands for seven days.

           

Benefits of having an attorney on your side.

The Sommer Law Group, P.C., assists clients in navigating through loan process through loan consulting while also taking the extra step by offering clients loan packages.  Contact the Sommer Law Group, BNS@SommerLawGroup.com , for a free consultation to receive guidance through the complexities one must go to in protecting themselves from the newest kind of loan shark.