17th February 2012

HONITON: Loan scam warning

Devon and Cornwall Police is warning the public about scams involving fake loan companies.

The internet is being used by criminals to target people with poor credit ratings who find it difficult to borrow money through the major financial institutions.

Following the initial online enquiry scammers contact the customer by telephone and claim to be from a genuine finance company.

They agree a loan but request an initial payment and administration fees are paid up front.

After the money is transferred to the scammers via a transfer agent, no loan is received and the company denies all knowledge.

There are a few simple checks you can do to make sure a loan company is genuine.

The scammers are likely to be based abroad and the most recent frauds use ‘020’ numbers but are based in New Delhi, India.

They also use transfer agents such as Western Union or MoneyGram which genuine financial institutions would never use.

PCSO Darren England from Honiton police station, said: “These loans can appear very attractive as a way of dealing with a desperate money situation. Remember, if anyone asks for money upfront, don’t sign up. And if the rates look too good to be true, they probably are.

“If you think you have been a victim of this scam, call the police on 08452 777444.”

HONITON: Loan scam warning

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