Avoiding Advance Fee Loan Scams this Holiday Season
December is here, and consumers are preparing for the holidays. The season has become known for being hectic and stressful, as people travel to see family and attempt to find the perfect gifts for their loved ones without breaking the bank. It can also be a time of making big purchases for your home and family, since many businesses put costly items like cars and furniture on sale.
With so many spending opportunities, it can be easy to find yourself strapped for cash around this time of year. It might be tempting to take out a small loan to help ease some financial strain, but be on the lookout for advance fee loan scams. If this is the first time you’re hearing of this kind of scam, it works like this: you receive some kind of communication (this could be a phone call, email, flyer or online ad) that offers a great deal on a loan. They may even promise a guaranteed low interest rate or tell you you’ve qualified for a special program. The deal is, you have to pay an upfront fee for processing or insurance. Once you pay the fee, the lender, and your money, disappear.
More than 100 advance fee loan scams were reported to BBB Scam Tracker across Texas in 2018, with claimed losses ranging from $25 to $7,000. So, what can you do to keep yourself safe? Follow these tips from your Better Business Bureau:
Enjoy a stress free and financially responsible holiday from BBB serving the Heart of Texas!