Scammers are targeting people who need to borrow. Here’s how to stay safe.
If you’re looking for a loan, you may be at your most vulnerable and unfortunately, that’s exactly when scammers strike.
Loan fee fraud happens when someone is asked to pay an upfront fee for a loan that doesn’t exist. The fraudsters often seem genuine and professional, but once you pay the fee, the loan never arrives and your money’s gone.
At Northern Community Bank, we want to help protect you and your loved ones from falling victim to these scams.
What Does Loan Fee Fraud Look Like?
It usually starts with an unexpected call, text, email or social media message promising a loan even if you’ve been turned down elsewhere.
You’re told your loan is approved, but you need to pay a fee first maybe for insurance, admin costs, or to prove you can afford it. The moment you pay, the fraudster disappears, and the loan never appears.
Warning Signs to Watch Out For
- You’re asked to pay a fee upfront – before you get the money
- The lender contacts you out of the blue
- You feel pressured to act quickly or “secure the offer”
- They ask for payment in unusual ways – like gift cards, bank transfer, or crypto
- The offer sounds too good to be true, especially if you have poor credit
What You Can Do to Stay Safe
Always check if the lender is authorised
Use the FCA register to make sure you’re dealing with a genuine lender. If they’re not listed, don’t hand over any money.
Never pay upfront for a loan
Genuine lenders (like Northern Community Bank) never ask for fees before giving you the loan.
Take your time
Don’t be rushed. Scammers use pressure tactics to get you to act before you think. A legitimate lender will give you space to decide.
Report anything suspicious
Contact Action Fraud on 0300 123 2040 or visit www.actionfraud.police.uk if you think you’ve been targeted.
Real Help, from a Real Lender
At Northern Community Bank, we’re proud to be a trusted, community-based lender. We offer:
- Affordable loans with no hidden fees
- Clear, upfront terms
- Friendly support
- Help when you need it – not pressure
We’ll never ask you to pay anything upfront, and we’ll always make sure any loan is right for your situation.
Need Support or Advice?
If something doesn’t feel right or if you’ve been caught out by a scam, you’re not alone. We’re here to support you without judgement.
You can always talk money with us.
