Personal loan scam warning

A warning has been issued over a new scam involving fraudulent personal loan offers.

16:25 05 January 2005

A warning has been issued over a new scam involving fraudulent personal loan offers.

The Office of Fair Trading (OFT) has warned British consumers over a wave of fraudulent personal loan offers sweeping the nation at the moment.

So far a large percentage of the UK population has been duped by the offers, which have cost some consumers as much as 4,000.

Credit advertisements have been run in local newspapers offering the chance for fast personal loans on an advanced fee basis, regardless of credit history.

A freephone number accompanies the advert, consumers are asked to post their advanced fee to "cover the insurance" but do not receive their personal loan in return.

OFT chairman John Vickers commented: "Consumers should be wary of any business which requires an advance fee to be paid via Western Union or MoneyGram to secure a loan.

"Any newspapers who are approached to put adverts of this sort in their papers should immediately contact the OFT and give details of who contacted them and the advert they attempted to place."