Better Business Bureau Warns Of Advance Fee Loan Scams

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The Better Business Bureau has issued a warning about First Union Credit & Finance and Front Line Equity Management.

“These businesses promise consumers, even those that are unqualified, that there is a high probability that their loan will be approved. Especially for consumers with bad credit or no credit history, this can be a very tempting offer,” says Deborah Brady, President of BBB serving Western Ontario. “The scammers then take off with the processing fee for a loan that will never materialize.”

They say that their investigation into First Union Credit & Finance and Front Line Equity Management has determined that they are Advanced Fee Loan Scams. Information from consumers has determined that this company is offering loans for an advance fee. Consumers allege that they have responded to advertisements on the internet for loans. After paying several hundreds of dollars, consumers allege that they never received the loan promised by the company.

These scams target individuals who are having trouble obtaining cash or credit. Customers are lured by advertisements promising “guaranteed” loans – regardless of credit history – for advance fees running between $50 and several hundred dollars. However, you must pay the advance fee before obtaining the “loan”.

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

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