Save content
Have you found this content useful? Use the button above to save it to your profile.
AIA

Maple Leaf Racket - Canadian scam hits UK

by
10th Jan 2005
Save content
Have you found this content useful? Use the button above to save it to your profile.

A Canadian "advance fee" loans scam has hit British shores, threatening to sting borrowers for thousands. According to a warning issued by the Office of Fair Trading (OFT) this weekend, advertisements have appeared in local newspapers which offer borrowers fast loans, regardless of their credit history.

The adverts are typically placed in the classified sections of free or local newspapers. The OFT says that "Consumers who respond to these adverts are told that their loan has been agreed but before they can have the money they will need to pay a fee to cover insurance of the loan. The consumers are asked to pay this advance fee by money order via Western Union or Money Gram."
Once the advance fee is paid the consumer never hears from the company again and the loan is never received. Some victims have lost up to £4,000.

The OFT has warned newspapers to be vigilant against the scam, and suspicious of adverts not complying with the Consumer Credit (Advertisements) Regulations 2004. It says it is "also concerned that organised criminal gangs may be using the personal details collected from victims'to commit further fraud."

OFT chairman John Vickers said in a statement, 'This loan scam is run by professional criminals. Consumers should be wary of any business which requires an advance fee to be paid via Western Union or MoneyGram to secure a loan. Any newspapers who are approached to put adverts of this sort in their papers should immediately contact the OFT and give details of who contacted them and the advert they attempted to place.'

The OFT is urging anyone contacted by the scam to contact it on: 08457 22 44 99

Tags:

Replies (0)

Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.