Warnings to watch out for loan fee scams in Greater Manchester
Victims are typically losing £260 pounds
Last updated 9th Aug 2023
Greater Manchester residents are being urged to be vigilant, and look out for a new loan scam sweeping the UK this summer.
The new con, where victims pay a deposit for a loan they never receive, is now 26% more common than it was 2 years ago,
This is according to the Financial Conduct Authority (FCA) who claim being scammed in this way typically results in a £260 loss.
They also told us this type of fraud usually peaks in the summer months when kids are off school.
Steve Smart from the FCA said:
"For many, summer brings with it the chance to relax and unwind but it also brings with it financial pressures.
"From holidays and festivals to funding days out, or out-of-term childcare for parents. With inflation, energy costs, and rising mortgage bills, this summer spending will come at a time of enhanced vulnerability for many.
"For fraudsters, this provides the perfect opportunity to take advantage of people considering how to make ends meet over the summer months."
Rosi Avis from Citizen's Advice Manchester tells us how to spot the fraudsters:
"See if you can get the name of the company they're calling from and check them on the Financial Services Register.
"All loan providers have to be registered on there so if they aren't on there - its generally a sign to not go with them.
"Also if you feel they are trying to pressure you on the spot, this is a warning sign something is not quite right.
"What we would always say also is that if something sounds too good to be true - it probably is."