Story Created:
Dec 20, 2007 at 7:21 PM CDT
Story Updated:
Apr 8, 2008 at 5:57 PM CDT
While lawmakers focus on federal spending, the rest uf us are worried about our own budgets. Holiday shopping can put a strain on our wallets. So the temptation to take out a loan to help pay Christmas bills could get quite strong. However, here are some word of warning when it comes to advance fee loans.
Advance fee loans sound enticing. For money up front some companies say they will loan up to ten times the fee. These offers usually come from online solicitations, the newspaper or by phone. The biggest boom is on the internet."A lot of times they tell you they can guarantee , that they can get you a loan regardless of your credit. And that's where a lot of people fall victim," says Better Business Bureau head Monica Horton.
And Horton adds, fall victim... consumers do. "There was a victim in Dayton, Texas who wired $1400 to Canada to secure a $15,000 loan." And once the money is wired, customers never get the loans, and many of them can't afford to lose money. "So we really want to get the word out and warn consumers before hand. Cause there's nopt a whole lot that can be done afterwards," she says.
Horton says there are no guarantees you can get a loan and credit will factor in on whether you get a loan. And finally, never wire money out of the country, that should be a blaring red flag! If you're leaning toward getting a loan--check it out with the better business bureau first. Also find out where the business is located and call people around that location to verify if the company really exists. If you've got a problem or question, call the You Ask, We Investigate line. The number is 687-U-ASK. That's 687-8275.
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