Advance Fee Loan Scams Are On The Rise In Western Ontario

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The BBB has issued a warning about the influx of Advance Fee Loan Scams in the region.

They say that they have received multiple reports that consumers have applied for loans online and after paying thousands of dollars for “insurance”, the promised loans were allegedly not received.

“These type of businesses target vulnerable individuals who are experiencing difficulty in obtaining cash or credit. For consumers with bad credit or no credit history, this can be a very tempting offer,” says Ashley Casselman, Communications Manager of BBB serving Western Ontario. “The scammers then take off with the processing fee for a loan that will never materialize.”

In Ontario, it is illegal for a company to request an upfront fee prior to obtaining a loan.

If you have been scammed, the BBB advises you to contact local law enforcement and the Canadian Anti-Fraud Centre at 1-888-495-8501.