<March 5, 2009> VICTORIA, BC – The Business Practices and Consumer Protection Authority (BPCPA) is urging consumers to be cautious about loan providers offering money with an advanced fee.  Many of the lenders guarantee the loan despite the applicant’s credit rating.

During this economic downturn consumers may find themselves in a position where they need to borrow money, but due to unforeseen circumstances, may have a poor credit rating. Unfortunately it is this type of situation that has attracted scammers, especially online, who promise to approve loans in exchange for an advanced fee. Once the consumer provides the fee it appears that the company disappears and the consumer never receives the promised funds.

In 2008, the BPCPA received approximately 30 inquiries from BC consumers regarding similar situations.

BC consumers should be advised that advanced fee loans are prohibited under Section 4(3)(b)(ix) of the Business Practices and Consumer Protection Act. A fee can only be deducted from the proceeds of the loan once the funds have been advanced to the consumer. In essence, the consumer should not have to pay a fee until they receive a loan.

When considering a loan opportunity, the BPCPA offers the following tips:

•    Never pay money to get money
•    Be cautious of companies that ask for your personal and banking information before you fill out a loan application
•    Be cautious of companies that promise to guarantee you a loan before seeing your credit rating

To report an advanced fee loan scam call the BPCPA Inquiry Centre at 1-888-564-9963 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it . For more information about the BPCPA visit www.bpcpa.ca.

The BPCPA is a not for profit corporation that was created to strengthen consumer protection in BC and enforces BC’s consumer protection laws. The BPCPA balances the interests of all parties to promote a marketplace that is fair for both BC consumers and businesses. The BPCPA licenses collection services, cemetery and funeral services, motion picture theatres, distributors, and video retailers, telemarketing services, travel services and home inspectors.

For general inquiries:
BPCPA Inquiry Centre
Toll Free: 1-888-564-9963
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it