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Posted on March 7, 2015 at 3:54 PM
If someone offers to loan you money but tells you they need a fee, security deposit, or insurance in
order to start actually giving you the cash, think carefully before signing up. These type of loans,
commonly called “advance fee loans,” tend to be scams rather than the answer to your prayers for
quick, easy money. This type of scam is becoming so prevalent, in fact, that the Federal Trade
Commission (FTC) and many state offices of the Better Business Bureau have named advance fee
loans as one of the “top scams” from 2014.

“Rule number one: legitimate lenders never…say you are
likely to get a loan or credit card before you apply, especially if you have bad credit, no credit, or
bankruptcy,” said the FTC in a statement on the subject[1].
In most advance fee loan scams, consumers are contacted via phone, email, or mail and told that they
qualify for a loan or credit card.

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