Central Bank warning to customers about 'ruthless' loan scam

Fraudsters target victims by promising them an upfront cash loan if they pay a prior administration fee

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09:38, 27 OCT 2023

People are being targeted largely online — People are being targeted largely online (Image: Getty Images)

The Central Bank of Ireland has warned customers to stay vigilant as a "ruthless" cash loan scam circulates.

Those seeking high cost credit loans are being targeted by calculated fraudsters. The 'advance fee' fraud often takes place online and promises customers a cash loan if they pay an administration fee.

However, high cost credit providers regulated by the Central Bank will never ask for a fee ahead of time. Customers should avoid engaging with providers that ask for this money as they are likely not legitimate.

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Director of Consumer Protection Colm Kincaid said the scam is particularly ruthless as those seeking the money are generally in challenging financial circumstances. He encouraged people to immediately cease engaging with providers looking for an administration fee.

Colm said: "There are rules in place that mean no legitimate high cost credit provider can ever charge you an administration or application fee for a loan. In some cases, we have seen websites that have been cloned from legitimate providers. So even in cases where no fee is charged, you should still check our register to ensure the provider you are dealing with is regulated by the Central Bank, which provides you with a number of protections."

The Central Bank is working with Gardai in efforts to combat the scam. Tell-tale signs of fraud include the provider not stating if it's regulated by the Central Bank of Ireland and false promises to give loans to people with bad credit.

Further information is available through the Central Bank's website.

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