Advance Fee Internet Scams

Email Loan Offers - a deal too good to be true

Mixed in with the rest of your email you may come across loan offers that guarantee you an unsecured loan regardless of your credit history. This will be music to the ears of many people desperate for some quick cash. The person sending these emails knows that, too. They also know that someone out there is going to see their loan offer and consider taking them up on it.

Think hard before accepting such an offer no matter how tempting or how much you need the money. Responding to unsolicited email offers is seldom, if ever, a good idea. If you do respond and begin the loan process there's one thing in particular to be on the lookout for: an advance fee.

What is an Advance Fee?

An advance fee is an amount that, once your loan is approved, you must pay to receive your money. How much sense does it make to pay money to get money? Oh, I'm sure you'll be given reasons for this that sound perfectly logical but real lending institutions don't operate this way. Many of the forms you'll be sent may look official and much of the process you go through via email may seem legit but once you're asked to send a fee to them before you receive the loan watch out! Once you send them your money it's over and you lost.

Advance Fee Scam Red Flags

There are a lot of tricks used by these scam artists to make everything sound reasonable. You might be told that the money is for a loan processing fee, closing costs or a credit check. It doesn't matter what they tell you because no bank needs to collect a fee to run a credit check. They have that kind of information right there at their fingertips.

We want to point out that a lender could require a fee in for a loan, especially a large or risky one but the fee will be nominal. If the amount reaches hundreds or thousands of dollars you should back out immediately because you're not dealing with a legit lender.

You may have closing costs for a property purchase but not a personal loan. If you do fall for this you will either never hear from the "lender" again or they will inform you that your loan request was denied and the advance fee you paid is non-refundable. Either way you will never see any of that fee money again. Be on your guard for requests regarding your bank credentials (PIN numbers etc). If you're told they need this to transfer the money to you do not give it to them! If you do they could simply drain your funds and vanish.

Scholarship Fees

Never pay a fee upfront for offers to search for scholarship information. This is unnecessary as you can find the same information yourself, for free. School counselors and librarians are great resources for help in researching scholarships.

Advance Fee Internet Scam Warning Signs:

• Even being asked for an advance fee to get a loan is your first warning sign. Lenders do not typically as for fees up front when you are applying for a loan and if they do it will not be at most a small processing fee.
  
  
• Getting offers for loans in the form of unsolicited emails is unusual for legitimate lending institutions like banks. You usually go to them and ask if you can borrow money. Someone seeking you out to loan you money should raise red flags immediately.
  
  
• If you have bad credit and are guaranteed that you will get a loan you should start to question the validity of the loan offer. We hate to break it to you but legitimate lenders seldom, if ever, loan money to people with bad credit. If you know you have bad credit and you are promised that a loan is guaranteed if you pay an advance fee you should be suspicious.
  
  
• If the lender refuses to give you your loan details in writing you should not do business with them. This is a common scam technique that you should question immediately. Legitimate lenders always give you a full rundown of the full cost of a loan. This means you will know your interest rate, length of time to pay the loan off, payoff amounts etc. Never sign any financial papers if you feel you are not being provided enough information.

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