Fraud Prevention Month Case #3:
Jeremy really wanted to buy that second hand car.  The bright red T-Bird had black leather seats.   He had already thought of the perfect item to hang on the rear-view mirror.  He knew he didn’t have the money but had just seen an ad for guaranteed loans.  All Jeremy had to do was send in fifty dollars and he would get the money.   The ad looked pretty fancy and had a toll free number and it didn’t matter if Jeremy had bad credit, which he did.  It sounded like the perfect solution.  And he really wanted that car.

Jeremy decided to go for it and sent in his money.  It wasn’t long before he heard back from the company – he had almost qualified for the loan and just had to send in an additional payment to secure the loan.  He was so close to getting his car. He could already picture himself behind the wheel.

WHAT WOULD YOU DO?
Many people like Jeremy pay the additional money only to find out they have been denied the loan but don’t get their money back or the loan company is never head from again. Every year people are lured by these ads and lose hundreds, even thousands of dollars.  In BC it’s illegal for loan brokers to ask for money before a consumer gets the loan.  The loan broker fee must be taken off the amount that is advanced, or lent to the consumer.   Ads for advance fee loans are often seen in the newspaper classifieds or online.  Although there are legitimate loan agencies out there, a glossy ad does not guarantee that the lender is legitimate. 

Consumer should be wary of companies that ask for personal and banking information before they even fill out a loan application.  Also be careful of companies that can guarantee a loan before they even see your credit rating. 

TIP:  You should never have to pay upfront for a loan. Any fee must be charged AFTER the loan has been secured.

March is Fraud Prevention Month - know your rights! If you have questions about your rights and responsibilities as a consumer in British Columbia, please contact Consumer Protection BC toll free at 1-888-564-9963 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .The “What Would You Do?” columns are presented by Consumer Protection BC to raise consumer awareness during Fraud Prevention Month.

Visit Consumer Protection BC at the 2010 Smart Shoppers event on March 27, 2010 at Metrotown Mall in Burnaby, hosted by the Better Business Bureau.
Take the Competition Bureau's Fraud Quiz.

The Case of the Tempting T-Bird