Gardai have warned the public over an online loan scam which is targeting vulnerable people.
Members of the Garda National Economic Crime Bureau revealed that a number of websites are offering unsecured loans to people with a low credit rating.
The scam sees the victim apply for the loan online without the need for a good credit rating, or any need to provide documentation beyond basic personal details.
The victim will then receive a call saying that their application has been successful, and asking them to send money to the lender in advance of the payment of the loan.
Scammers will claim this money will be used as either an upfront fee, to discharge overseas taxes, to pay PPI insurance on the loan or simply to show that the victim has the ability to meet their repayments.
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However the loan is never issued to the victim after this payment, and the "advance fee" money is lost.
Gardai have warned that you should never apply for a loan from a firm that is not authorised by the Central Bank. A full list of registered firms can be found HERE.
Officers have also released a list of warning signs the public should look out for when applying for a loan online:
- The website will claim to offer a fast and easy way to apply for a loan online.
- The loan will be approved very quickly and without checks on identity, the ability to pay or credit rating.
- No hard copy/paper documentation will be required by the lender.
- The lender will ask for a payment of some kind in advance of the loan being given to the applicant.
- The lender will NOT be authorised by the Central Bank of Ireland although it may claim (on its website or during a telephone call) that it is.
