Advance loan fee fraud
Don’t give scammers an upfront advance fee for a loan you will never receive. Lifestyle Loans will never charge any upfront fees. Lifestyle Loans is a trusted UK loan site, but we know that scammers have pretended to be from Lifestyle Loans to make their loan offer look like it is from a trusted company. We have reported this to the FCA and there is a warning on our FCA registration to hopefully help stop this fraud. Lifestyle Loans will never ask for an upfront fee. If you have been asked for an upfront fee from Lifestyle Loans you have been contacted by scammers. Please read below and help protect yourself and others from becoming a victim.
What is loan fee fraud?
Loan fee scams happen when you’re asked to pay an upfront fee for a loan you’ll never receive. Advance fee fraud for a loan is now the most common type of scam reported to the Financial Conduct Authority (FCA), ahead of investment fraud.
How does loan fee fraud work?
If you’ve got limited access to mainstream credit, have a lower income or a lower credit rate, then you’re more likely to be targeted by loan fee scammers. Fraudsters will try to convince you that you can pay an advance fee for a loan, which you’ll never receive. Some people are persuaded to make several payments before they realise it is an advance fee scam.
How to spot a loan fee scam
If you are asked to pay an upfront fee for a loan it could be an advance fee scam. Here are some of the common signs of an advance fee loan scam:
- Being asked to pay an upfront advance fee
- Likely being told that the fee is refundable and will be used as a deposit, administrative fee, or as insurance because of bad credit history
- Asked to pay various follow-up fees in order to get the loan, ranging from £25 to £450 each time
- You’ll be put under pressure to pay quickly and/or asked to pay in an unusual method (eg Western Union, iTunes vouchers).
Report a loan fee scam
If you think you’ve been approached by an unauthorised firm or a scammer is trying to con you into sending an advance fee for a loan, report it to the FCA via its reporting form and select Consumer Credit as the type of scam. We also want you to contact us so we are aware. If you think you have lost money to fraud, you should report it to Action Fraud on 0300 123 2040 or online via the Action Fraud website. (this is an external link).