People looking for a personal loan are being warned by Citizens Advice to be wary of companies who request an upfront fee.
The advice agency has reported an increasing number people falling victim to personal loan companies that demand an upfront payment for a loan that never arrives in the customer's bank account.
In some cases the personal loan does arrive but it is often less than the original amount agreed and has a high level of interest.
The advice agency says that if you do not receive the full amount of loan agreed you can take action against the company.
"If you do not receive your money back this is a breach of your rights and you would be entitled to pursue the company and take them to court," a spokesperson advised.
This advice follows the Office of Fair Trading's Scams Awareness Month, which was launched in February this year to highlight the problems of mass-marketed ploys to dupe consumers out of their money.
Warning over personal loan scams
Warning over personal loan scams
Thu, 11 May 2006
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