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!