If you are offered a loan over the phone, but are required to pay money up front, IT IS A SCAM!
It is against federal law to offer a loan by a phone call and require upfront money:
http://www.consumer.ftc.gov/articles/0078-advance-fee-loans
"A loan that is offered by phone. It is illegal for companies doing business by phone in the U.S. to promise you a loan or credit card and ask you to pay for it before they deliver."
If you paid via credit card, dispute the charges.
If you paid via pre-paid money card, like GreenDot or MoneyPak or the likes, or via wire transfer, you can not recover your money. These form of money transfer are considered untraceable cash transfers and offer you no chance of recovering funds. This is why criminals prefer these methods to steal your money.
>> I will report this to the NY BBB and they better do something to these people. <<
Um ... Sandy ... exactly what do you think the BBB can do?
They have NO enforcement powers!
Read this:
"It is illegal for companies doing business by phone in the U.S. to promise you a loan or credit card and ask you to pay for it before they deliver."
http://www.consumer.ftc.gov/articles/0078-advance-fee-loans
If you or a friend need a loan, you really should read this:
http://www.consumer.ftc.gov/articles/0153-choosing-credit-counselor
In fact, the more you need the money, the more urgent it is to read that information!
Protect yourself!
Recognize that NO legitimate company is going to offer you a loan, without their doing some background / credit checks on you, and they WILL generally need a snailmailed, signed contract.
If you or a friend fell for the scam, please try to educate your other friends. The only way to stop these scams is to cut off their source of money!
You've been scammed and any money you paid is gone. This scam has been around of a while..
Things to remember about loans offered by phone or e-mail: (Pay attention to item #4!)
Loans
1. No reputable lender will lend you money over the phone.
2. No reputable lender will lend you money by e-mail
3. On-line lenders are nothing more than conduits for another loan scam.
4. Advance fees for loans are always illegal. At least in most American states.
5. If you want to borrow money, go to an established brick and mortar lender that has been around awhile.
6. If you receive a call from someone with an Indian accent either a. threatening you or b. offering you something, you know it’s a scam and you should hang up immediately.
7. These people are predators, the calls are not random, they have information that they have bought from various sources and know your financial history. If you have ever taken out a pay-day loan, they have all your information. They know who they are calling. They like to pick on women, single mothers, the elderly and sometimes members of the immigrant community. Also, those who might be in financial difficulty.
8. Report them here: http://www.stopfraud.gov/report.html
9. And here: http://www.ic3.gov/default.aspx
Things to remember about loans offered by phone or e-mail: (Pay attention to item #4!)
Loans
1. No reputable lender will lend you money over the phone.
2. No reputable lender will lend you money by e-mail
3. On-line lenders are nothing more than conduits for another loan scam.
4. Advance fees for loans are always illegal. At least in most American states.
5. If you want to borrow money, go to an established brick and mortar lender that has been around awhile.
6. If you receive a call from someone with an Indian accent either a. threatening you or b. offering you something, you know it’s a scam and you should hang up immediately.
7. These people are predators, the calls are not random, they have information that they have bought from various sources and know your financial history. If you have ever taken out a pay-day loan, they have all your information. They know who they are calling. They like to pick on women, single mothers, the elderly and sometimes members of the immigrant community. Also, those who might be in financial difficulty.
8. Report them here: http://www.stopfraud.gov/report.html
9. And here: http://www.ic3.gov/default.aspx
Advance fee loans are illegal period and in some states, so are the payday loans. Please be aware the scammers may also claim down the road that you have taken a loan and try to extort money from you that way as well!
http://www.nw3c.org/
http://www.ic3.gov/default.aspx
http://www.fbi.gov/
https://www.ftccomplaintassistant.gov/#&panel1-1
https://esupport.fcc.gov/ccmsforms/form1088.action
http://www.consumerfinance.gov/complaint/
http://www.fraud.org/
http://www.stopfraud.gov/report.html
Tip off FBI about this extortion attempt by filing form at: stips.fbi.gov/