Consumers warned of loan scams in the lead up to Christmas

Once again, the police are having to warn consumers about cash scams if they are trying to secure a cash loan before Christmas. These scams promise easy money with few restrictions, but currently officers are dealing with cases where a person has applied for a loan to a company and has then been asked to give money upfront in order to secure the loan.

Needless to say, after these hard up people have struggled to get this so called ‘admin fee’ together the loan doesn’t materialise and they find themselves in an even bigger financial hole than they were before. The police are stressing that you should never pay any amount of money upfront to secure a loan and should only deal with reputable companies.

These scams are not dissimilar to the well known scams where you do a foreign national a favour by accepting money on their behalf into your bank account, or receive that email telling you that you have won a large sum of money in an overseas lottery. Both of these ask for money upfront first with the promise of a lump sum to follow, but of course they never arrive.

In this latest scam, innocent consumers are being asked to pay upfront not in cash but in Ukash vouchers. This is very clever of the swindlers as Ukash are a reputable company who allow cash to be given in exchange for a voucher number at local shops. This voucher can then be used to buy goods or pay for services on the phone or over the internet instead of using a paypal account or with a credit card.

The fact that they are using Ukash vouchers makes customers believe that they are part of the loan company which is completely false. The current scam revolves around short term loans, similar to payday loans, for those who can’t get credit elsewhere, and lures them in by promising instant cash loans.