Loan Fee Fraud

Loan fee fraud targets people in financial difficulty who struggle to access mainstream credit. The fraudster advertises guaranteed loans regardless of credit history, sometimes impersonating a legitimate lender or bank. Once the victim applies, they are told the loan is approved but must first pay an arrangement fee, insurance premium, or deposit — often hundreds of pounds or dollars.

After paying the fee, the loan never arrives. The fraudster either demands additional fees (claiming the first covered administration but not insurance, for example) or simply disappears. Victims are often left worse off than before — having paid a fee they could not afford and still without the funds they needed.

Legitimate lenders never require upfront fees before disbursing a loan. All fees for genuine loan products are either deducted from the loan amount or added to repayments. If you are asked to pay anything before receiving a loan, it is fraud.