Bogus loan firms target those in debt, says CAB
Share
Bogus loan companies are preying on those in debt by demanding up-front fees and then disappearing, the Citizens Advice Bureau claims.
The loans are advertised by text, by phone or online and victims are lured in by easy cash on favourable terms before being persuade to part with a set up fee.
CAB director of policy Teresa Perchard says the fraudsters target those who are rejected for credit by mainstream banks and there are increasing number of her clients losing substantial amounts.
An ex-member of the armed forces was conned out of £250 after his house fell into repossession and he tried to find a quick fix.
Perchard says: “We are seeing people who have lost hundreds of pounds they can ill afford after paying fees in advance for a non-existent loan. Some have also had their bank accounts raided after handing over their account details.
She also warned against public sector cuts allowing the con men to flourish if there are cuts in local advice and regulatory regimes.
“Rogue traders and rip offs like this which thrive in recessionary times could be off the hook if this happens.
Readers' comments (1)
Anonymous | 15 Jun 2010 4:11 pm
Its an indictment of modern society, both the 'rogue trader' and the gullible 'man in the street'. There is very rarely a quick fix and its about time the masses moved in to the real world.
Its good to see that the CAB are on the ball as this has only been happening, in its current guise, for the last two years.
Unsuitable or offensive? Report this comment