Financial scams are on the rise as the cost-of-living crisis is exerting increasing pressure on people’s finances. The Financial Conduct Authority (FCA) has reported hundreds of cases of loan fee fraud a year, with victims losing on average £255. To combat this, we have partnered with them on a London-wide mail out campaign in February 2024.
We are writing to more than 50,000 households across London to warn them on the surge of loan fee fraud. We are encouraging them to do the 3-step check to protect themselves from scams:
- If you are cold called or emailed, it could be a scam.
- Or if you’re asked to pay an upfront fee, it could be a scam.
- Or if you’re asked to pay quickly or unusually, it could be a scam.
The campaign also promotes Debt Free Advice’s support for individuals experiencing financial concerns, such as loan arrears, utility bills, council tax and credit card debts. Our expert advisors provide free, independent advice and will help individuals to resolve their debts.
“As the cost-of-living crisis remains unrelenting, many of our clients turn to loans to navigate through financial challenges. Everyone deserves access to secure and responsible financial solutions, which is why we're committed to raising awareness about loan fee fraud. We want to ensure they can navigate the loan process safely and avoid predatory schemes that could further burden their debts.”
“Fraudsters will take advantage. Don’t let them. Remember the 3-step check and protect yourself and your loved ones from loan fee fraud. If you are cold called or emailed, it could be a scam. If you’re asked to pay an upfront fee, it could be a scam. And if you are asked to pay quickly or unusually, it could be a scam.”
Consumers can check the information on the FCA’s Loan Fee Fraud website, and the name of the firm on the FCA Register, before applying for a loan. This will help identify any firms that are actively trying to scam consumers and to flag the signs to look out for to avoid becoming a victim of loan fee fraud.
Debt Free Advice can be reached 7 days a week from 8am to 8pm. Call or send a WhatsApp message to 0800 808 5694 or go online to https://debtfreeadvice.com/lookingforaloan.