Consumer Complaints: Advance fee loan scams


UPDATE: Additional information has come to my attention, and this article has been updated accordingly.

One of the consumer scams that is most well-known and most hated by fraud experts is the Advance Fee Loan scam. The scam is exactly what it sounds like: You want a loan, and someone offers you a loan but asks for a hefty fee prior to giving you the loan. And we're not talking a small application fee that a bank sometimes requires. We're talking about significant money up front before you ever see a dime. And the "loan" never happens.

One WalletPop reader has been taken for $39,000 with this type of scam. Here's her story with her name changed to protect her identity...

In late 2007, Angie began looking for funding for her small family-owned business. She was in financial trouble and was striking out with banks. She started looking for funding in the private sector, and her research brought her to Global Funding Network.