Loan company Advance America, who is based in South Carolina, says consumers in Louisiana are being targeted by a scam.
The company says scammers, posing as Advance America representatives, are contacting residents offering approval for personal loans in exchange for payment as a good faith deposit.
In other cases, scammers seek to collect on “unpaid” small-dollar loan debt, often threatening arrest or legal action or demanding personal financial information over the phone.
Advance America offers these tips to avoid a scam:
- Never give personal information such as your Social Security number or bank account information online or over the phone without verifying that you are working with a legitimate lender or bill collector. Verify company licenses when applying for a loan online. Legitimate lenders will display their licenses on their websites to verify they are fully licensed in your state and comply with state and federal laws.
- · Be suspicious of any email with urgent requests for personal financial information. If an email makes upsetting or exciting false statements, it’s likely a scam.
- · Never wire money or provide prepaid debit card information to a lender claiming you have been pre-approved for a loan and must make an initial payment as a “show of good faith.” Legitimate lenders do not offer approvals prior to application and do not require good faith deposits.
- · Keep anti-virus, anti-malware, and spam email protection software up to date on all your computing devices.
- · Maintain a record of all outstanding debt, and include lender contact information.
- · Regularly check your bank, credit and debit card statements to ensure there are no unauthorized transactions. Likewise, check your credit report (using Equifax, Experian, or TransUnion) every four months on a rotating basis; credit reports are often one of the first places where signs of identity theft or fraud will appear.
- · If someone approaches you claiming you owe them a debt, demand they provide written proof of the debt as the law requires – especially if it’s for a charge you don’t recognize.
