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6/23/2010

Lexington, KY - With financial institutions tightening the reins on lending for some consumers, many people suffering from the down economy are running out of options for financing. The con artists are taking advantage of this in a scam that's picking up again in the area.

If you have less than terrific credit, and have been turned down for a loan from banks or other lenders, then an offer like one sent to your Better Business Bureau guaranteeing you a low interest loan may seem like a lifeline. But think again.

One example sent by a consumer says it's from TransAmerica Finance. It gives an address in Hacienda Heights, California. The package sent to a consumer outlines pages of how the company can help him get a loan for as much at $50,000…they promise they can make it fast and easy to obtain bad credit financing. That should be the first red flag…if you have bad credit, it is unlikely getting a loan will be fast OR easy.

But here is the clincher…the company tells the borrower that a $2500 dollar fee is required up front for insurance on the loan in case the borrower defaults. It is illegal for a company to require a fee like that up front to give you a loan, no matter why they say they need it.

The BBB in California, where this company claims to be located, confirms the scam. They had a consumer who wired money to Transamerica and never got a loan and never got her money back….and the company did not respond to the complaint.

The con artists behind advance fee loan scams are usually outside the United States. They can pick up a Moneygram from you from just about anywhere, so they lie about where they are located. Don't let your desperation to get a loan cause you to be tempted by this…don't fall for it.

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Be a "Don’t Fall for It!" informant! If you have something to share you believe may be a fraudulent offer or scam, please let the BBB know! Call us at (859) 259-1008 or toll-free, 1-800-866-6668, or email us at info@lexbbb.com.