What would you do if you wanted to buy a car but were a bit short on cash? What if you need a loan but have bad credit? Would you jump at the opportunity if a loan broker offered to secure a loan for you and all you had to do was give them $50 upfront?
Sounds too good to be true, doesn’t it? According to the Canadian Anti-Fraud Centre, it’s actually illegal for a company to request an upfront fee prior to obtaining your loan.
Here are some tips from the Financial Consumer Agency of Canada about advance fee loans:
- Don’t pay upfront. Legitimate lenders don’t usually ask for advance fees.
- Don’t fall for promises that you’ll get a loan regardless of your credit problems. If you have poor credit or haven’t established a good credit history yet, it’s unlikely that anyone will lend you money without charging large fees.
- Be cautious about emails offering to help you get a loan. Many unsolicited emails are fraudulent.
If you have paid for an advance fee loan and suspect that you have been scammed, report your concerns to your local police and the Canadian Anti-Fraud Centre at 1-888-495-8501. I hope this information is useful to you!
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Thank you for your post!
I believe I have been scammed by a company Amlin Financial Group. Can someone contact me back. I have paid to secure the loan. I have yet to receive it.
Hi Sasha, thank you for your comment and I’m sorry to hear that this has happened to you. You can report your concerns to your local police and the Canadian Anti-Fraud Centre at 1-888-495-8501. Their website is here…http://www.antifraudcentre-centreantifraude.ca/index-eng.htm
i have a question i think its a scam but not sure the company called silver crest credit wants to give me a loan for 8000 but wants 800 to secure loan told me i can pay threw bill payment threw my bank or email money transfer that it was safe and traceable that they would not rip me is this true
Hello Chris — It’s great that you’re being cautious, as, from what you’ve described above, I would be suspicious too. My suggestion to you would be to reach out to the Canadian Anti-Fraud Centre for more information about this company and to see if they’ve had reports from other consumers. Their telephone number is 1-888-495-8501 or you can visit their website at http://www.antifraudcentre-centreantifraude.ca/index-eng.htm. Let me know what you learn, Chris!
Hello i got the same email…
Chris did you get any news??? Im trying and i cant seem to find anything on this company
Hi Anne Marie and Chris, if your email suggested that the loan requires an upfront payment, please be cautious as it is illegal for a company to request an upfront fee. Please do give the Canadian Anti-Fraud Centre a call as they may have more information.