Scams like "Advance Fee Loans" may promise they can arrange a loan or credit for a consumer, regardless of your credit history. These scammers target people with credit problems or no credit history at all, the unemployed, and even those consumers in emergencies who need cash fast. They advertise their services, but that doesn't mean they are real or honest.

Here's what you should know, to avoid scam loans:

  1. Don't Pay Upfront: The scams often require your payments before the lender is identified and the application is completed. It's against the law for companies to promise you a loan over the phone and ask for money before they give it to you.

  2. No Guaranteed Loans: Good lenders won't guarantee you a loan in advance, especially if your credit is bad.

  3. Watch the Fees: There are rules about how much fees they can charge. If it's too much, you can report it to New York's Attorney General.

  4. Don't Share Important Info: Never give out your credit card, bank information, or Social Security number unless you know the company and why they need it.

  5. Don't Pay Without Proof: If you're asked to pay before you have a loan offer in writing, it's probably a scam.

If you believe you are a victim of an advance-fee loan scam, contact the Office of the New York State Attorney General at 1-800-771-7755 to report the company.

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Last Reviewed: October 12, 2023