Loan Insurance Fee

credit insurance fee

Credit fraud happens when a victim is asked to make an advance payment for a loan. Credit fee frauds FCA Have you a poor solvency or do you need a loan quickly? Were you asked to make an advance payment when you applied for a loan or loan? More and more consumer stories are coming in that they have been asked to make a payment - usually between 25 and 450 - when they apply for a loan that they never get.

It is a type of defraud known as "credit fee fraud" or "advance fee fraud". Maybe you have submitted several loan requests on-line and were then approached by SMS, e-mail or phone out of the blue for a loan. We may ask you to make an initial prepayment to a wire deposit box or wire funds via an uncommon means such as Western Union or iTunestscheine.

Fraudsters can state that the fee is recoverable and is used as a down pay, administration fee, insurance or because of poor financial standing. As soon as the first installment is made, the fraudster can again call you to request further installments before the loan can be approved. However, regardless of the number of repayments made, the loan never comes about.

You should only apply to companies approved by the FCA when you apply for a loan. When you work with an unauthorized company, you are not protected by the Financial Ombudsman Service if something goes awry. They should review our financial services registry to see if the company is controlled by us and verify that the company's contacts provided correspond to the registry.

Please always use the contacts in our registry and not a connection or e-mail they give you. In case there is no information in our registry or the company says it is out of date, call our consumer hotline at 0800 111 6768. Learn more about unauthorized companies and persons and how you can help prevent fraud.

When you are required to make an advance payment before receiving a loan from an authorized company, the company should provide you with a notification containing certain information. It should contain the company's name as it will appear in the Financial Services Register and a statement that the company acts as a financial intermediary.

It should also contain a declaration stating that you will or must make a fee for the company's service, the amount of the fee or how it is charged and when and how the company will assume the fee. When you are asked to make an advance deposit from a company that does not comply with the above mentioned procedure, it could be a fraud.

Should you believe that you have been addressed by an unauthorized company or have been compromised due to fraud, you should notify us using our registration forms or our consumer hotline at 0800 111 6768.

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