- Tuesday, 22 June 2010Consumers already facing a
debt management plan should not be tempted by companies offering a fake
loan for an upfront fee.
This warning was made by the Citizens Advice Bureau (CAB) last week, which believes that these firms are preying on those already in debt, eager for a way out.
These organisations often persuade consumers to pay an upfront fee, ranging from £35 to £2,000, but the
loan they are promised fails to show up and money is lost.
Teresa Perchard, policy director at CAB, said: "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 urges consumers not to pay an upfront fee for a
loan as these are usually scams and they will not be able to get their money back as the companies are impossible to contact.
Confused.com also warned consumers not to fall for door-to-door salesmen, offering energy deals, as these can work out more expensive than signing up online.
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Registered Office: 45 Clarendon Road, Watford WD17 1SZ
Consumer Credit Licence Number: 0580960