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  • Geebo 9:00 am on November 14, 2025 Permalink | Reply
    Tags: instant loans, , loan scam, ,   

    The Quick-Loan Hustle 

    By Greg Collier

    Scammers are luring people with “quick approval” loans and hiding major fees, identity theft risks, and long-term debt traps.

    A Hand Up That Ends Up a Hand Over:

    Jessica was looking for a small personal loan to cover an unexpected car repair. Online she found what appeared to be the perfect solution: apply, get approved in minutes, and have funds the next day. The website looked legit, the approval email came back fast, and the funds appeared in her bank account. But the catch came later—hidden fees, monthly premiums she didn’t remember agreeing to, and worse: her identity was used to open other loans in her name. By the time she reached out for help, her credit was damaged and collection calls had started.

    What’s Going On:

    • Fraudsters advertise “no credit check” loans with instant funding as long as you provide personal info and a bank account or debit card.
    • The “loan” appears in your account, but it comes with undisclosed fees, daily payments, or hidden subscription services you didn’t agree to.
    • Meanwhile, your identity may also be used to open other accounts, steal your bank routing information, or enroll you in repayment traps.
    • Once fees and payments trigger defaults, collection agencies, new loans, and credit damage follow.

    These scams are proliferating as borrowers seek fast cash online and lenders reduce scrutiny.

    Why It’s Effective:

    • Many borrowers are financially stressed and willing to accept “too good to be true” offers.
    • Digital loan websites often look professional, use real bank logos, and mimic legitimate lenders.
    • The speed of approval lowers people’s defenses—they act before reading small print.
    • Identity theft and account takeover often accompany these scams, making recovery much harder.
    • Regulatory oversight is inconsistent across jurisdictions, and many of these operations are offshore or disappear quickly.

    Red Flags:

    • A lender states “instant approval” with minimal verification or promises money within hours.
    • You receive the funds and then later discover large hidden fees, daily automated debit withdrawals, or charges for vague “service” or “processing.”
    • The website doesn’t display a physical address or is vague about licensing and terms.
    • You’re asked to provide access to your bank account or approve debits without a clear reason.
    • You start receiving unexpected bills, new loans you didn’t authorize, or collection notices for debts you didn’t knowingly incur.

    Quick tip: If you’re asked to share your bank login or routing number for a “quick loan,” pause. Legitimate lenders typically don’t require this level of access at the outset.

    What You Can Do:

    • Read the fine print and check for hidden fees, daily debits, or subscriptions bundled into the loan.
    • Use reputable lenders—check your state’s licensing directory and consumer-finance agency.
    • Monitor your bank account and credit report, and look for signs of unauthorized accounts or loans.
    • If you suspect identity theft, place a fraud alert or freeze on your credit file.
    • Report suspicious loan offers to your state attorney general’s office or the Consumer Financial Protection Bureau (CFPB) if in the U.S., and file complaints through local consumer-protection agencies.

    If You’ve Been Targeted:

    1. Contact your bank and request an investigation of the unauthorized loan or debits.
    2. Report the fraud to the CFPB, FTC, or equivalent agency in your country.
    3. Review your credit report for any new loans or accounts you don’t recognize.
    4. Document everything—approval emails, loan terms, bank transactions, correspondence.
    5. Consider contacting a credit-repair specialist or consumer-protection lawyer if your credit was significantly harmed.

    Final Thoughts:

    Instant-loan scams combine financial stress, digital convenience, and identity theft into a potent fraud cocktail. What seems like a quick fix often turns into a long-term problem. The best protection: pause, verify, and read thoroughly before accepting an offer that claims to be “too fast to trust.”

    Every borrower deserves transparency and fairness. Don’t let speed rob you of security.

    Further Reading:

     

  • Geebo 8:00 am on September 29, 2025 Permalink | Reply
    Tags: , , loan scam,   

    Fake Collector Targets Old Loan Debt 

    Fake Collector Targets Old Loan Debt

    By Greg Collier

    A Kansas man recently lost $1,500 to a debt collection scam that relied on fabricated paperwork and a sense of urgency to convince the victim of its legitimacy. The case, reported by the Better Business Bureau, involved fraudulent claims of a decades-old loan.

    The scam began when the victim received emails suggesting that a loan of more than $13,000, dating back twenty years, remained unpaid. The sender presented themselves as both a courthouse official and a lawyer, weaving together an appearance of authority. Within days, the victim was persuaded to hand over banking information under what was described as a settlement arrangement.

    The scheme was bolstered with documents designed to look authentic. These included official-looking logos and even a notary stamp, elements carefully chosen to create the illusion of legitimacy. The scammers also attempted to reframe the payment demand as a bargain, falsely claiming that the debt had doubled and the requested amount was a reduced figure.

    Targeting such an old debt is a tactic commonly used to create intimidation and confusion. Many consumers are uncertain about financial records from decades past, and scammers rely on that uncertainty to discourage verification. In reality, even legitimate debts of that age are often considered time-barred and are no longer legally enforceable.

    The damage in this case extended beyond the immediate financial loss. By handing over banking information, the victim exposed themselves to possible identity theft, which can lead to new fraudulent charges and long-term risks beyond the original payment.

    Eventually, the target became wary and researched the organizations involved. This led to the discovery that the businesses had no verifiable addresses, confirming the suspicion that the collection attempt was fraudulent.

    The Better Business Bureau has warned that such scams are effective because they exploit both fear and confusion. Consumers are advised to be cautious when contacted about old debts and to request written validation before engaging. Researching the credibility of any collection agency and refusing to share sensitive financial details under pressure are vital steps in avoiding similar schemes.

    This case is part of a broader pattern of fraud in which criminals pose as figures of authority and attempt to frighten victims into fast decisions. Just as with fake tax collection calls or phishing emails that mimic banks and government agencies, the strategy depends on creating panic and preventing careful verification. Recognizing these patterns can help consumers respond with caution and avoid becoming the next target.

     

  • Geebo 8:00 am on June 2, 2023 Permalink | Reply
    Tags: , , , loan scam,   

    Think twice about that online loan 

    Think twice about that online loan

    By Greg Collier

    There are few things more frustrating than when a surprise expense needs to be paid, such as an emergency car or home repair. If someone is short on cash, they might consider a loan. Then, to simplify matters, they may look online for a loan. Unfortunately, there is a veritable minefield to navigate while looking for a legitimate lender. One wrong virtual step could lead you into a scammer’s trap.

    For example, a Dallas area woman was looking for a small loan to have her car repaired. She filled out an application through what she claims was a legitimate lender. Once the application was completed, she started receiving offers from several different online lenders.

    One lender in particular told the woman she needed help with her credit score to get a loan. This lender supposedly had the solution. They would send the woman $1800 and by sending back the money it would improve her credit, so she could get the loan. The payment sent to the woman’s bank account was not legitimate. The scammers had contested charges with her bank to make it look like there had been an $1800 deposit. If the woman had sent the $1800 to the scammers, she would have been out $1800 of her own money. This is not unlike the fake check scam. Thankfully, the woman realized she was being scammed before sending any money.

    Legitimate lenders will never have you send them money. If a lender sends you money, then wants you to pay it back immediately, they’re trying to steal from you.

    If you’re looking for a loan online, you need to follow many precautions. Look for reviews, ratings, and complaints about the lender from reliable sources. Avoid sharing sensitive information such as your Social Security number, bank account details, or passwords unless you trust the lender and are confident in their legitimacy. Obtain loan quotes from multiple lenders and compare terms, interest rates, and repayment conditions. Be skeptical of significantly lower rates or overly favorable terms. And of course, if something seems too good to be true or feels suspicious, it’s better to be cautious and seek alternative lending options.

     

  • Geebo 8:00 am on October 20, 2022 Permalink | Reply
    Tags: , loan scam, , ,   

    Now is really the time to look out for student debt scams 

    By Greg Collier

    Ever since the government announced its student debt forgiveness program, we’ve been warning those eligible for the program to be on the lookout for scammers. This past Monday, it was announced that the application process is finally open. Along with that announcement, both The White House and the Federal Trade Commission have issued warnings about student debt forgiveness scammers and how to try to avoid them. We’re going to go over some of the warning signs so hopefully those who need relief the most won’t fall deeper into debt.

    The first thing to keep in mind is that the program is free. Scammers will either tell you that there’s a charge for the application or that they can fast track your application for a fee. Neither of these things are true.

    Another red flag is if someone approaches you about applying for the program. If you receive a voicemail or robocall from someone claiming to be from an organization with a generic name like ‘the Biden student loan forgiveness program’, they’re scammers. You have to apply first at the Federal Student Aid website at StudentAid.gov. Any form of communication that approaches you before you apply is probably trying to steal your personal and financial information.

    Scammers like to prey on confusion, and the government isn’t exactly helping themselves in that department. After you apply for the program, you may receive emails from the following government email addresses. Those include noreply@studentaid.gov, noreply@debtrelief.studentaid.gov or ed.gov@public.govdelivery.com. Carefully check the email addresses on the emails you might receive. Scammers will try to use similar looking addresses to fool you into divulging personal information.

    Lastly, the application process does not ask you to upload any financial documents or give any banking information. While some applicants may be asked for financial records later on in the process, they will not be asked for them while filling out the application. You will also not be asked for your Federal Student Aid number.

    You can read more about student debt forgiveness scams at the Federal Student Aid website.

     

  • Geebo 8:00 am on May 19, 2022 Permalink | Reply
    Tags: , , loan scam,   

    Don’t pay advance fees for loans 

    Don't pay advance fees for loans

    By Greg Collier

    There are certain business you shouldn’t use if they solicit your business through email. One of those businesses is that of the online lender. These supposed lenders claim they’ll lend you thousands of dollars that they’ll get to you in no time flat. They may also claim that no credit check is needed, or that they’re not like the big banks when it comes to lending.

    If someone were to take one of these lenders up on their offer, a number of things could happen, and none of them are good. You could have your personal and financial information stolen, or you could be victim to a predatory lender with exorbitant interest rates. Think along the lines of those payday loan stores. However, the most common scam when it comes to online loans is the advance fee scam.

    Typically, when we talk about the advance fee scam, we’re talking about phony sweepstakes that scammers say their victims have one. Then the scammers ask for payment to cover taxes or processing fees. Scammers will keep asking for payments as long as they can keep the victim on the hook. Meanwhile, there are no sweepstakes that the victim won.

    This recently happened with a loan to a man in Arkansas who was looking to make some improvements to his home. He applied for some loans online before getting an email from a supposed lender. The lender promised that could get the money to his bank account in 15 minutes. All the man needed to do was pay them $200 in gift cards. After the man paid the initial $200, he was asked to pay another $200. He did, and still did not receive his loan. It was at this point the man realized he had been scammed.

    Legitimate lenders will never ask for payment in advance. They make their money through interest once the loan is paid back and not through outlandish fees. That’s not even considering no legitimate bank or financial institution will accept gift cards as payment.

     

  • Geebo 8:00 am on October 8, 2021 Permalink | Reply
    Tags: , , loan scam, , , , , ,   

    Scam Round Up: Don’t let strangers use your phone and more 

    Scam Round Up: Don't let strangers use your phone and more

    By Greg Collier

    We’re closing out the week again with another trio of scams that have popped up around the country.

    ***

    Our first scam comes to us from Charlotte, North Carolina. Residents there have been complaining about a bold scam that takes advantage of your kindness. The scam involves people coming up to you asking to use your phone. The scammers will have some kind of story like hey’re car broke down and can they use your phone to call someone. Once they have your phone, they’ll open up whatever payment app you have on your phone and send all your money to the scammers account. In Charlotte, residents there have said that Venmo was specifically targeted, but this scam could be used on any payment app. The best way to prevent this from happening, outside of letting no one use your phone, is to enable the security features on your accounts. Usually, you can secure your accounts with a PIN or have them require your fingerprint or facial recognition.

    ***

    Speaking of North Carolina, the Better Business Bureau of Eastern North Carolina is warning consumers about phony lenders who are really looking to pull off an old scam. In this scam, the lender promise an easy loan, and will deposit a check in your bank account. The scammers will then demand you to buy loan insurance before the check even clears. However, the check never clears as it’s a fake, leaving the victim responsible for the check’s amount to their bank. These phony lenders usually promise you won’t have to undergo a credit check. This should be your red flag, as all legitimate lenders will have you undergo a credit check. Also, no one seeking a loan should respond to unsolicited offers they may receive through text or email.

    ***

    Lastly, the Better Business Bureau of Tulsa is warning their residents about a text messaging scam that threatens to lock their phone. Consumers there have been getting texts that appear to come from their cell phone providers telling them that their phone will be locked if they don’t make a payment. The text also contains a link that should never be clicked on. The link will either inject malware into your phone or it will ask you for your financial information. If you receive one of these texts or one like it, call the customer service number that appears on your bill or on the provider’s website.

    ***

    Please keep in mind that scams like this aren’t confined to the area where they are being reported on in the news. They could just as easily be happening in your area.

     

  • Geebo 8:00 am on August 11, 2021 Permalink | Reply
    Tags: , , , , loan scam, ,   

    In danger of being evicted makes a prime target for scammers 

    In danger of being evicted makes a prime target for scammers

    By Greg Collier

    The Federal Government has extended the eviction moratorium to October 3rd. Not only does this give tenants extra time to try to improve their situation, but it also gives scammers more opportunities to find more victims. Scammers are always looking for victims who are in a desperate situation, and there’s no situation more desperate than the possibility of losing your home. To scammers, it doesn’t matter if you only have a little money to your name. They’ll try to take it anyway. And now they’re trying to take it from those trying to keep a roof over their heads.

    The Better Business Bureau has issued a warning to those looking for any kind of rental assistance. Too many scammers are out there now, offering services that are too good to be true. The scams run from phony credit repair services to ‘guaranteed’ loan services. While there are legitimate credit repair services, consumers need to keep an eye out for repair services that make promises they can’t keep, like removing a bankruptcy from your credit report. And no loan is ever guaranteed. Those who are offering such loans will probably ask for an upfront or advance fee and not provide any service.

    There are also government grant scams to look out for. While there are government grants that provide financial assistance to some tenants, the government will never reach out to you. And again, the grant scammers will ask for an advance payment disguised as processing fees. Real grants require no such fee.

    However, the BBB has been warning about one particular scam lately. In it, the scammers call you to tell you that your loan is approved. They’re hoping that you’ve applied for at least one loan to help improve your situation. The scammers will then say that before they can release the loan money, you need to increase your credit score. All you need to do is wait for $1000 to show up in your bank account then once you send the $1000 back, your credit score will be improved enough to get the loan. The money deposited into your account is fraudulent and if you send it to the scammers before your bank catches the fraudulent transaction, you’re not only responsible for the $1000 but any overdraft fees as well.

     

  • Geebo 8:00 am on October 2, 2020 Permalink | Reply
    Tags: , , loan scam, ,   

    Medicare, lost millionaires, and a loan scam 

    Medicare, lost millionaires, and a loan scam

    It’s time for us to bring you another trio of scams that are happening around the country. Even though these scams may not be in your area, they could be soon.

    In North Dakota, authorities there are warning of a Medicare scam that’s been plaguing senior residents of the state. Scammers are said to have been calling residents claiming that they need to be issued new plastic Medicare cards to replace the paper ones. All the resident needs to do is to verify their Medicare number. In reality, the scammers could potentially file numerous fraudulent medical claims using the victim’s Medicare number. Always keep in mind that a government agency will never ask you for information that they should already have.

    In one county in Kansas, the local sheriff is warning residents about a scam that sounds straight out of an old sitcom. Residents in Brown County have received letters in the mail saying that a relative has died and left them a life insurance payout worth millions of dollars. The problem with this scam is that scammers seemingly know the actual names of distant relatives of the residents who have recently passed away. This adds an unfortunate air of legitimacy to the scam. However, the legitimate-looking letter only provides an email contact for someone to process the ‘paperwork’. We imagine that there would be some form of payment requested to process the phony insurance policy.

    Officials in Georgia are warning residents there about a phone scam that’s offering loans in value up to $30,000. With this scam, the ‘loan’ comes at the cost of fake processing fees that could reach $1000 themselves. The scammers are asking for these payments in cashier’s check, wire transfer, or prepaid debit card. These are all forms of payment that could be considered untraceable once the money is spent. Officials would like to remind residents that legitimate lenders make their money through interest once the loan is paid back and not through outlandish fees.

     

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