Ken Paxton

Beware of So-Called "Large Fund" Loan Officers

Monday, October 4, 2004
Texas consumers have notified us that they answered newspaper ads for loans to "large fund borrowers." Victims were instructed to wire a large fee (about $2000), after which the company promised to deposit the loan in the consumer's checking account within 24 hours. Weeks later, the money still has not been deposited and the company is giving the consumers the runaround.

Advance fee loans (loans that are not funded until after the consumer pays fees up front) are illegal. The use of wire transfer instead of US Postal Service is another warning sign. Scammers often use wire transfer to avoid federal mail fraud charges. Victims in this case also supplied personal financial information and are therefore at risk of identity theft.

Beware of easy credit offers that seem to good to be true. Legitimate lenders will not charge a fee up front before funding a loan or ask you to use wire transfer.