Advance fee loan scams and fraudulent loan sites.
#772 by dlcooper Thu Jul 26, 2007 3:15 pm
General advice:
  • Make sure that a financial services business is properly registered with the relevant authorities so as to be able to conduct business with you.
  • Be very wary of any sites that appear to offer loans but insist on an upfront payment for "insurance" or for some sort of "processing fee".
Here are two closely-related recent examples of fake loan businesses:

"Kentucky Title Loans" used the website http://www.ktlinc.net at which they supposedly offered loans at reasonable rates. Consumers were told that they had to pay an upfront fee in order to buy insurance on the loan. Victims sent between $500 and $2500 to an address in Canada, as instructed, but then heard nothing more. "Kentucky Title Loans" were not located at the Kentucky address they gave on their website and they were not registered to do business in Kentucky.

In any case, it is ILLEGAL in Kentucky, as well as in some other jurisdictions, to collect an advance fee from a borrower.

A closely-related scam was operated by "World Financial Solutions" at the website http://www.neversayno.com.

The Office of Financial Institutions (OFI) in Kentucky issued subpoenas to the hosting companies, resulting in removal of the sites.

Sources: Kentucky OFI warning; Cease & Desist Order; OFI News Release.

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