Beware of Loan Fee Fraud

What is loan fee fraud?

Loan free fraud is when someone who is looking for a loan is asked to pay an upfront fee before the loan is paid out. They pay the fee, but never get the loan.

Loan fee fraud is a scam which targets people looking for loans online. The scammers contact the victims and ask for the fee before they can ‘pay the loan’. The perpetrators will often pressure people to pay the fee quickly or even ask for payment in the form of vouchers or bank transfer.

Who is most at risk?

Scammers are calculated and cruel. Those conducting loan fee fraud target vulnerable people in our communities. This includes those who are struggling financially, people with lower credit ratings and have less access to credit.

Victims tend to be aged between 25-47, male and working in a manual job or unemployed.

How to spot loan fee fraud?

Just because you are not the average victim of loan fee fraud, you could still be targeted. It is important to still be aware of the tell-tale signs of these scammers!

The Financial Conduct Authority (FCA) has launched a step-by-step plan to help everyone protect themselves from the scam.

  • Cold called or emailed out of the blue? Be aware this could be a scam.
  • Asked to pay an upfront fee? It could be a scam.
  • Put under pressure to pay an upfront fee quickly? It could be a scam.
  • If you’re asked to pay an upfront fee through unsecure webpages, via gift vouchers, cash or any usual means, it could be a scam.

Always check the Financial Services Register to make sure the firm you’re planning to borrow off is regulated. You should only deal with FCA authorised firms. This makes sure you’re covered by the Financial Ombudsman if anything goes wrong.

What to do if you think you’ve been a victim of loan fee fraud

If you think you have been contacted by a fraudster, or unauthorized firm, you should report it to the FCA here.

If it seems untrustworthy, it probably is. It is always better to be safe than sorry.

Loans with Voyager Alliance Credit Union

It is important to know that there are no hidden fees with our loans. Voyager Alliance is a responsible lender and will never ask you to pay an upfront fee to assess or to pay your loan to you. We are regulated by the FCA and Prudential Regulation Authority (PRA), meaning our members are assured that we work to the highest standard. We are also protected by the Financial Services Compensation Scheme (FSCS), meaning our members money is always safe with us!

Check out our loans here!