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Credit and Loan Phone Scams

Credit problems? No Problem!
You have been preapproved for an unlimited line of credit. We don't care about your past. You deserve a loan!

These are just a few examples of tempting "easy cash" offers that guarantee loans or credit cards, regardless of your credit history. Be cautious when dealing with credit and debt relief offers like these especially when they come by phone from strangers.

Knowing the tell-tale signs of credit and loan scams can help protect you, and your money, from being taken.

Some signs of a fraudulent credit or loan offer:

  • A lender who is not interested in your credit history. Callers who say "Bad credit? No problem!" or "No hassle guaranteed!" are not to be trusted. Why would someone out of the blue just call you up and offer you credit on easy terms?

  • "Your loan is guaranteed." Legitimate lenders never "guarantee" that you will receive a loan before you apply.

  • A lender who uses a copy-cat or "wanna-be" name. Crooks give their companies names that sound like well-known or respected organizations and create websites that look slick. Some scam artists have pretended to be the Better Business Bureau or similar reputable organizations.

  • A lender who is not registered in your state. Lenders and loan brokers are required to register in the states where they do business.

  • A lender who asks you to wire money or pay an individual. Don't wire or make any payment for a loan or credit card directly to an individual.

Credit Card Loss Protection Scams

"I got a call from a woman who said I need credit card loss protection insurance. I thought there was a law that limited my liability for unauthorized charges to $50. But she said the law had changed and that now, people are liable for all unauthorized charges on their account. Is that true?"

Don't buy the pitch. Telephone scam artists are lying to get people to buy worthless credit card loss protection and insurance programs. If you didn't authorize a charge, don't pay it. Follow your credit card issuer's procedures for disputing charges you haven't authorized.

The FTC cautions consumers to avoid doing business with callers who claim:

  • You're liable for more than $50 in unauthorized charges on your credit card account

  • You need credit card loss protection because computer hackers can access your credit card number and charge thousands of dollars to your account

  • A computer bug could make it easy for thieves to place unauthorized charges on your credit card account

  • They're from "the security department" and want to activate the protection feature on your credit card

FTC Publications

Your credit report has information that affects whether you can get a loan - and how much you will have to pay to borrow money. Under federal law, you have the right to get a free copy of your credit report from each of the three national credit bureaus, at your request, once every 12 months.

Get your FREE Annual Credit Report here.

Learn more here.