Canadian news outlets are reporting on a new low interest loan scam that appears to be targeting women. According to some of the victims, they were offered low interest loans with small payments, even though their credit history dictated that they weren’t very good candidates. They were then told that they would have to supply five months of the payments as collateral for the low interest loans. Once they sent in the first payment of five months in advance, the women were contacted again to send an additional five payments for the low interest loan. Months later and not a single one has received the loan they requested. Officials believe that the fraud is very wide spread and have not yet determined the company responsible for the low interest loan frauds. It appears as though the scam was being perpetrated by companies with several different names, making it harder to follow up to see who is responsible. Even though the paperwork for the low interest loans appeared legitimate, experts are encouraging consumers to be extra careful when applying for a loan. If you think something may be wrong or the company seems anxious to get several months of payments in advance, these experts recommend going with a different lender.
Related reading: Low Interest Loan
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