Beward of Fraudulent Loan Solicitations

November 5, 2008

The Federal Reserve is warning consumers about a fraudulent loan program being touted around by scammers.

Here’s how they do it: Consumers are told that they can work with a broker to access a Federal Reserve program that extends sizeable secured loans to consumers. These consumers are encouraged to deposit large sums of money into a bank account, under the guise of a security deposit, to receive the alleged loan.

Please be aware that the Federal Reserve has no involvement in these fraudulent solicitations and does not directly sponsor consumer lending programs.

The Fed is urging consumers to verify the legitimacy of potential service providers before entering into a business transaction. It also advises people to only do business with reputable lenders, or lenders they’ve worked with before, and to shop around for the most favorable loan terms.

Unfortunately, in these difficult economic times, these predators are doing all they can to take advantage of unsuspecting people, who are having a hard time getting by. Please share this information with everyone you know, especially seniors, so they don’t fall prey to this scam.

If you have questions about any loan solicitation that you think may be fraudulent, please contact the Federal Reserve or call them at 1.888.851.1920.

Questions or Comments? E-Mail me at blogger@matadorsmoneymatters.com.

Posted in Alerts & Scams