Warning over loan scam

Money

Liverpool people are being warned over a scam in which they are asked to pay advance fees before a loan is released.

They are asked to pay by UKASH vouchers to release a loan they have been promised in an unsolicited phone call by a company called Cash Saga. The company will often recontact the consumer and ask for further money before releasing the loan money

Liverpool Trading Standards, who have received a number of complaints from people who have lost money, are not aware of anyone receiving the loan after making these payments and are warning people not to fall for this scam.

John McHale,  head of Trading Standards, said: “No genuine loan company will ask you to send money in advance to secure or release a loan. If you are asked to send such fees then simply refuse to do so. If you do you will not see your money again.

“While this scam is being operated by Cash Saga, you should be aware that scammers often operate under a number of different names and the same advice applies to whatever the company is called.”

Trading Standards have issued the following advice:

• Check the company has a valid consumer credit licence on 0800 111 6768 or http://www.fsa.gov.uk/register/home.do

• Never give your financial details as a result of an unsolicited phone call or email

• Check the person you are sending the voucher to is a genuine merchant listed on www.ukash.com

• If you think you have been scammed then report the matter to the Financial Conduct Authority on 0800 111 6768 or CACS on 0845 4 040506  or Action Fraud on 0300 123 2040