Dishonest Loan Companies Requesting Upfront Fee

Increasing numbers of British people are falling victim to loan scams, according to research from the Citizens Advice Bureau (CAB).

Consumers are falling for offers of fast loans regardless of credit history but those who respond are told they must pay a fee to cover insurance before their agreed loan can be released to them.

CAB says once the advance if paid, consumers never hear from the company again and the loan never appears.

Last February the Office of Fair Trading launched Scams Awareness Month to alert the public to deceptive and fraudulent mass-marketed scams.

"Even if the company offers you the loan and you decide not to take it, or if you receive a loan and they give you less money than you asked for, you are entitled the money back," said a spokesperson from the Citizens Advice Bureau.

"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. You would also be able to pursue the company for the losses you incur for taking them to court."