BBB warns of loan scams

By Staff
The Better Business Bureau of North Alabama is warning consumers to be on the lookout for websites that impersonate legitimate lenders to steal money from consumers.
The web sites promise loans to anyone, regardless of the person’s credit history. The web sites promise “guaranteed” low-interest loans and require an on-line application. The companies then contact the applicant to say the loan has been approved but requires a pre-pay fee. The loan applicant is asked to wire the money, usually to a Canadian location. The consumer never receives the loan and cannot recover the money he sent.
The groups often use addresses or names or legitimate lending companies.
To avoid these scams, BBB suggests: