{"id":37884,"date":"2008-03-26T16:35:41","date_gmt":"2008-03-26T21:35:41","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/uncategorized\/the-truth-about-advance-free-loan-scams.html"},"modified":"2008-03-26T16:35:41","modified_gmt":"2008-03-26T21:35:41","slug":"the-truth-about-advance-free-loan-scams","status":"publish","type":"corporate","link":"https:\/\/corporate.findlaw.com\/litigation-disputes\/the-truth-about-advance-free-loan-scams.html","title":{"rendered":"The Truth About Advance-Free Loan Scams"},"content":{"rendered":"<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    <p><em>This article was edited and reviewed by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\" rel=\"noopener\">FindLaw Attorney Writers<\/a><\/em><\/p>\n\n                | Last reviewed\n        <time>\n                            May 07, 2026\n                    <\/time>\n    <\/div>\n\n    \n    <div class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <h2>\n            <button tabindex=\"0\" aria-expanded=\"false\">\n                <i class=\"fl-gutenberg-byline-icon\"><\/i>\n                Legally Reviewed\n            <\/button>\n        <\/h2>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\" rel=\"noopener\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\" rel=\"noopener\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/div>\n\n    <div class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <h2>\n            <button tabindex=\"0\" aria-expanded=\"false\">\n                <i class=\"fl-gutenberg-byline-icon\"><\/i>\n                Fact-Checked\n            <\/button>\n        <\/h2>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\" rel=\"noopener\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/div>\n<\/section>\n\n\n\n<div class=\"rxbodyfield\" xmlns:o=\"urn:www.microsoft.com\/office\" xmlns:st1=\"urn:www.microsoft.com\/smarttags\" xmlns:w=\"urn:www.microsoft.com\/word\" xmlns:x=\"urn:www.microsoft.com\/excel\"><p><font size=\"5\">B<\/font><font size=\"3\">eware of advertisements for &quot;advance-fee&quot; or &quot;guaranteed&quot; consumer and small business loans. They are against the law. This brochure tells you how to recognize ads for advance-fee loan scams, how to tell them from legitimate offers by credit grantors, what to do if you are a victim, and where you can find low-cost help in dealing with credit problems.<\/font><\/p><p><font color=\"#008080\" face=\"Arial\" size=\"4\">Recognizing An Advance-Fee Loan Scam<\/font><font face=\"Times New Roman\" size=\"3\"><br\/><\/font> <font size=\"3\">The vast majority of legitimate lenders are owned and managed by professionals. But fraudulent loan brokers and other individuals misrepresenting the availability of credit and credit terms definitely are in business. One of their favorite strategies is the &quot;advance-fee&quot; loan scam. That&#39;s where you are guaranteed to get a loan or other type of credit &#194;&#8212; but you must pay <b>before<\/b> you apply.<\/font><\/p><p><font size=\"3\">Advertisements that promise loans generally appear in the classified section of local and national newspapers and magazines. They also may appear in mailings, radio spots, and on local cable stations. Often, these ads feature &quot;900&quot; numbers, which result in charges on your phone bill, or toll-free &quot;800&quot; numbers. Unfortunately, advertising in recognized media outlets does not guarantee the legitimacy of the company behind the ad. In addition, these companies often use delivery systems other than the U.S. Postal Service, such as overnight or courier services, to avoid detection and prosecution by postal authorities.<\/font><\/p><p><font size=\"3\">Some companies claim they can guarantee you a loan for a fee paid in advance. The fee may range from $100 to several hundred dollars. Indeed, small businesses have been charged as much as several thousand dollars as an advance fee for a loan. Whether you are an individual consumer or an owner of a small business, the result is the same: you don&#39;t get your money; the con artist does. And once con artists get your money, they disappear.<\/font><\/p><p><font size=\"3\">Don&#39;t confuse a legitimate pre-approved credit offer with a legitimate pre-qualified offer from mortgage brokers, banks, savings and loans, and credit unions. A pre-approved offer requires only your verbal or written acceptance. A pre-qualified offer means you&#39;ve been selected to apply. However, you still must go through the normal application process, and you still can be turned down.<\/font><\/p><p><font size=\"3\">If someone guarantees &#194;&#8212; or states &#194;&#8212; there&#39;s a strong chance they can arrange to get you a loan or other form of credit, be suspicious. And if you&#39;re asked to pay before you receive the loan or credit offer, <b>hang up.<\/b> It&#39;s against the law.<\/font><\/p><p><font color=\"#008080\" face=\"Arial\" size=\"4\">Protecting Yourself<\/font><font face=\"Times New Roman\" size=\"3\"><br\/><\/font> <font size=\"3\">According to the Federal Trade Commission&#39;s (FTC) Telemarketing Sales Rule, if someone guarantees or suggests that there is a strong chance they can get or arrange for a loan or other form of credit for you, they cannot ask you to pay &#194;&#8212; or accept payment &#194;&#8212; for their service until you get your loan or credit.<\/font><\/p><p><font size=\"3\">Here are some points to keep in mind before you respond to ads that promise easy credit, regardless of your credit history:<\/font><\/p><ul><li><font size=\"3\">Legitimate lenders never &quot;guarantee&quot; or say that you are likely to get a loan or a credit card <b>before<\/b> you apply, especially if you have bad credit, no credit, or a bankruptcy.<\/font><\/li><\/ul><ul><li><font size=\"3\">If you apply for a real estate loan, it is accepted and common practice for lenders to request payment for a credit report or appraisal. However, legitimate lenders never ask you to pay for processing your application.<\/font><\/li><\/ul><ul><li><font size=\"3\">Never give your credit card account number, bank account information, or Social Security Number over the telephone unless you are familiar with the company and know why the information is necessary.<\/font><\/li><\/ul><ul><li><font size=\"3\">If you don&#39;t have the offer in hand &#194;&#8212; or confirmed in writing &#194;&#8212; and you are asked to pay, hang up. It&#39;s fraud and it&#39;s against the law.<\/font><\/li><\/ul><p><font color=\"#008080\" face=\"Arial\" size=\"4\">If You Are A Victim<\/font><font face=\"Times New Roman\" size=\"3\"><br\/><\/font> <font size=\"3\">If you think you&#39;ve been a victim of an advance-fee loan scam, contact your local consumer protection agency, Better Business Bureau (BBB), state Attorney General, or Call for Action (202-537-0585; TDD: 202-537-1551) to report the company.<\/font><\/p><p><font size=\"3\">You also may file a complaint with the FTC. Write to: Correspondence Branch, Federal Trade Commission, Washington, DC 20580. Although the FTC generally does not intervene in individual disputes, the information you provide may help indicate a pattern of possible law violations requiring action by the Commission.<\/font><\/p><p><font color=\"#008080\" face=\"Arial\" size=\"4\">Finding Low-Cost Help for Credit Problems<\/font><font face=\"Times New Roman\" size=\"3\"><br\/><\/font> <font size=\"3\">It&#39;s a good idea to try to solve your debt problems with your creditors as soon as you realize you won&#39;t be able to make your payments. If you can&#39;t resolve your credit problems yourself or need additional assistance, you may want to contact a credit counseling service. There are nonprofit organizations in every state that counsel indebted consumers. Counselors try to arrange repayment plans that are acceptable to you and your creditors. They also will help you set up a realistic budget. These services are offered at little or no cost.<\/font><\/p><p><font size=\"3\">Universities, military bases, credit unions, and housing authorities also may offer low- or no-cost credit counseling programs. Check the white pages of your telephone directory for a service near you.<\/font><\/p><p><font color=\"#008080\" face=\"Arial\" size=\"4\">For More Information<\/font><\/p><div align=\"center\"><center><table border=\"0\" cellpadding=\"0\" cellspacing=\"0\" width=\"580\"><tr><td><font face=\"Times New Roman\">You can file a complaint with the FTC by contacting the Consumer Response Center by phone: 202-FTC-HELP (382-4357); TDD: 202-326-2502; by mail: Consumer Response Center, Federal Trade Commission, Washington, DC 20580; or through the Internet, using the <a href=\"http:\/\/www.ftc.gov\/ftc\/complaint.htm\" rel=\"noopener\">online complaint form<\/a>.<\/font> Although the Commission cannot resolve individual problems for consumers, it can act against a company if it sees a pattern of possible law violations. <p>The FTC publishes free brochures on many consumer issues. For a <a href=\"http:\/\/www.ftc.gov\/ftc\/consumer.htm\" rel=\"noopener\">complete list of publications<\/a>, write for <b>Best Sellers<\/b><font size=\"3\">,<\/font> Consumer Response Center, <font size=\"3\"><a href=\"http:\/\/www.ftc.gov\/index.html\" rel=\"noopener\">Federal Trade Commission<\/a>,<\/font> Washington, D.C. 20580; or call (202) FTC-HELP (382-4357), TDD (202) 326-2502.<\/p><\/td><\/tr><\/table><\/center><\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>Beware of advertisements for &#8220;advance-fee&#8221; or &#8220;guaranteed&#8221; consumer and small business loans. They are against the law. This brochure tells you how to recognize ads for advance-fee loan scams, how to tell them from legitimate offers by credit &#8230;<\/p>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_categories":[6520,6532],"class_list":["post-37884","corporate","type-corporate","status-publish","hentry","corporate_categories-litigation-disputes","corporate_categories-litigation-disputes__other-litigation-disputes"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate\/37884","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=37884"}],"wp:term":[{"taxonomy":"corporate_categories","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_categories?post=37884"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}