Tag: Loan Scams

How To Stop Receiving Loan Offer By Unsolicited Email? Canada’s Anti-Spam Legislation Resolved Your Problem

What to do when you receive online loan offer by unsolicited email?What to do when you receive online loan offer by unsolicited email?

Please don’t respond to such kinds of unsolicited emails, there is a possibility it may look like your online loan offer has been coming from some of the reliable and well established source but remember it’s a scam because financial companies, banks, lenders, businesses and organizations don’t send such scam messages and emails and also don’t let their representatives to do an unlawful and unethical way to collect leads for them. Loan offers like personal loans, student loans, car loans, credit cards and mortgages are one of high demand personal financial need of general people that’s the reason it persuade negative practice and where online media supports such kinds of spammers due to bulk and fast delivery of their unsolicited commercial messages to great numbers of people at once. Beside educating consumers to staying safe online there was a great need to implement law on spam and other electronic threats (Government of Canada Anti-Spam Legislation) to help and protect Canadians while ensuring that businesses can continue to compete in the global market.

Solicited vs. unsolicited definition: It can be any instance used to sell or offer any service through physical or digital media like mail, email, SMS, telephone and, at home or office is either solicited or unsolicited – “solicited email is any message or a newsletter sent only to recipients who have requested it, where unsolicited email (known as spam), is any message, posting or a newsletter, that is sent to recipients who haven’t specifically requested the email or any kind of subscription service”.

Most of the loan scams on the internet took place through unsolicited emails; loan scam emails are especially written for borrower looking for an instant relief and kind of loan that no one willing to give borrower having poor credit rating, no credit and critical credit problem with their credit history that’s the reason most of loan scams in Canada effects people looking for cash advances and credit repair, search online and you will find credit repair scam, student loan scam, payday loan scam and bad credit loan scams are most prominent searches of loan scams online.

There is good news for Canadian consumers, as new Canadian Anti-Spam Legislation taking effect as of July 1, 2014, it will definitely illuminate such kinds of spam commercial messages related to loan offers and all the other consumer products and services. The new law will not even help Canadian consumers avoid spam and other electronic threats but also individuals, businesses and organizations involve in the process make their privacy policies more strict in relation to the marketing their products and services.

Government of Canada Anti-Spam Legislation (CASL)

The New Anti-Spam Act will begin to take effect on July 1, 2014! Government of Canada Introduces Anti-Spam Legislation imposes more stringent requirements on the use of commercial email than the U.K. and U.S. does. Here are some of the important things about Canada’s Anti-Spam Legislation that every marketer need to know:

The CASL regulates “commercial electronic messages (CEM),” which is defined very broadly and includes email, sms text message, instant messenger and other similar means of telecommunication. Pursuant to the legislation, essentially any email or text that is sent for commercial purposes will be classified as a CEM unless it falls into one of the enumerated exceptions.

In order to send CEM’s, you must have received express and/or implied consent from consumer. You cannot send unsolicited CEM’s. CASL requires CEM to contain the following information:

  • (i) the identity of the sending business and/or the business on whose behalf the message was sent (including d/b/a information);
  • (ii) contact information, including a physical address and either a telephone number, email address, or web address of the sender or on whose behalf the message was sent, all of which must remain accurate for at least 60 days; and
  • (iii) an unsubscribe mechanism.

To obtain express consent to send CEM on your post page, you must not use any pre-checked tick boxes and the following information must clearly be identified as part of the request:

  • (i) the purpose for the consent;
  • (ii) the identity of the business seeking consent and/or the business on whose behalf consent is sought, including d/b/a information;
  • (iii) contact information, including a mailing address and either a telephone number, email address, or web address of the business seeking consent or the business on whose behalf consent is sought; and
  • (iv) a statement that consent may be withdrawn.

A violation of CASL may result in severe monetary penalties by either an administrative or a private action. For more information about the law, please visit http://fightspam.gc.ca/eic/site/030.nsf/eng/home

Remember, CASL is protecting Canadians not just from potential unwanted emails, but it applies to every commercial electronic message (CEM) sent by any medium that is accessed on a Canadian computer, moreover, if you are using social networks like Twitter, Facebook, or Linkedin to send commercial type of emails to fellow members then it is also treated as CEM under CASL. For all foreign marketers either from Australia, U.K., U.S.A. and, or else doing business in Canada are advised to follow the rule and organize your next marketing campaigns accordingly.

For Canadian lenders, financial companies and marketing personals; this news article does not constitute legal advice not should it be used as a substitute for legal counsel. We recommend you consult with your legal and compliance department to ensure all requirements of the new law are properly implemented.

For Canadian consumers, borrowers and buying personals; Hopefully it will discourage all kinds of unsolicited mailings, now you will not receive commercial emails and messages containing unsolicited loan offers and any kind of other consumer products and services like before in Canada and if you still receive such unwanted and, or unsubscribed unsolicited commercial electronic messages and emails, remember, you have right to complain it otherwise, mark them spam messages and send them to junk folder of your email account, click the unsubscribe link promptly to stop receiving further unsolicited commercial messages in future. Hope for the best and be protected, thanks.

Don’t Pay An Up-Front Fee To Get A Loan! Beware Of Loan Fraud & Scam

Concept of down payment against shopping for merchandise on credit, like personal loan, car loan, mortgage loan and other household and, or business products on credit like; equipment, furniture and utility could be easily absorb as a logical transaction by our mind because it reduces our monthly payments to the level of our affordability, but paying cash for the sake of getting cash loans, mortgages and other credit forms seem really illogical, it’s like reducing the value of dollar beside increasing personal liability.

Don’t pay upfront fee, legitimate lenders don’t usually ask for a fees upfront. If there is any processing charges, credit reports expenses, interest rate lock fee, application fee or appraisal fee requires once you begin working with a loan officer, it should be very small and not the hundreds or even thousands of dollars that scam artists usually demand. Moreover, this scam differs because it requires advance payment for the promise of a loan – an illegal act, both in USA and Canada. Many advance-fee loans are solicited via the unsolicited mailings, telephone calls, internet, promotional literature or advertised in the classified sections of the local newspapers and magazines.

Canadian loan scams:

Advance fee loan scams are the second highest reported frauds to the Royal Canadian Mounted Police (RCMP).


  • Total loss – Once you send the money it is very difficult to get it back.
  • Partly loss – The upfront or arrangement fee is never returned and even if the loan does arrive, it is less than the agreed amount, with a high rate of interest.

Who is at risk?

Advance fee loans often take advantage of the most vulnerable members of our society. These shady loan companies target borrowers who have credit problems and can’t get loans from regular sources of traditional financial institutions, often people with a poor credit rating, little financial experience with low-income group get caught under false promises. These people may be financially tight enough even they can’t afford to lose the arrangement fee.

How it works?

Regardless of your income, job status or past credit history, you’re promised a loan or credit card in exchange of an upfront fee that you have to pay before receiving the money or credit card. Don’t fall for such promises that you’ll get a loan regardless of your credit problems. If you have poor credit or haven’t established a good credit record yet, it’s unlikely that anyone will lend you money. Your credit history along with your monthly income to check your savings and affordability to pay back loan are the basic things that lenders use to decide if you are of a good credit risk. The loan or credit card never materializes, and your fee is lost.

Signs of advance fee loan fraud:

Beware of companies who offer to arrange personal loans, mortgage loans, debt consolidation or credit cards but request an upfront fee.

  • It’s a warning sign if a lender says they won’t check your credit history, beside asks you to disclose your personal information, such as your bank account number, driver’s license or Social Security / Social Insurance number. Its possible they may use your information to debit your bank account to pay a fee they’re asking undercover.
  • If you are offered a low-interest loan against your money problems and bad credit history. Be careful because in most such cases there is no loan and this is just a front for scammers looking to make quick money.
  • If you do not have the offer in hand or confirmed in writing and you are asked to pay upfront, do not do it. It is fraud and it is against the law. Moreover, it may also be possible that loan advertisements you have attracted to don’t mention any arrangement fee but suddenly request a fee on your loan application; be very wary.
  • Be cautious about emails offering to help you get a loan. Most of the unsolicited emails are fraudulent.
  • A loan that is offered by phone, it’s illegal for companies doing business by phone to promise you a loan and ask you to pay for it before they deliver the money.
  • A lender who asks you to wire money or pay an individual via Western Union or MoneyGram. Don’t make a payment for a loan or send money orders for a loan or credit card directly to an individual; legitimate lenders don’t ask anyone to do that.
  • Pressure to act immediately. Advance fee loan schemers will try to get you to send money or give out personal information like your credit card number, bank account information and social insurance number before you get any paperwork. Insist on receiving the necessary paperwork before deciding whether to apply for credit.
  • A lender who uses a copy-cat or pretended to be well-known or established name. Crooks often use like they been a respectable organization and uses a websites to get attention. These kinds of scam artists also uses some authority names like Better Business Bureau, VeriSign Secured, and other like they been fulfilling industry standards, and some even produce forged paperwork or pay people to pretend to be references.
  • Always check location and contact information. If the loan broker hesitates to tell you their physical location, beware that this is a common ploy to avoid law enforcement detection. Always get a company’s phone number first for instant check. Get a physical address; if its not available through their phone number, otherwise a company that advertises a P.O. Box as its address is one to check out with the appropriate authorities like BBB, which is available throughout the U.S. and Canada. Then contact the BBB in that city to request information on the lender. Don’t do any business with the broker and the financial institute until you have their physical address or location
  • A lender who is not registered in your province, state or country. Lenders and loan brokers are required to register in the area where they do business. Although checking registration doesn’t guarantee that you will get the lender with the best offer but it will save you to get caught by any crook.

What to do:

Ignore the request for upfront payment for the promise or “guarantee” of a loan. Never ever send money to people you do not know via Western Union or MoneyGram, it is always a guaranteed fraud. Don’t pay upfront fees to anyone. The reports of unsuspecting homeowners placing their trust in the hands of third party’s with no results are mounting. Many have lost thousands of dollars and the result is often foreclosure. If anyone other than an attorney or banker asks for a retainer or upfront fee – you should stop your self to proceed.

Whom to report it to:

If you have ever fallen prey to advance fee loan fraud, you should report this crime at once because your hesitation will not remove traces of hard feelings that you have been conned by such schemes but you will feel strong and responsible while closing the door for these predators to strike again to others.

  • File a complaint with the Reporting Economic Crime Online (RECOL) through its website here at www.recol.ca. This service is administered by National White Collar Crime Centre of Canada and is supported by the Royal Canadian Mounted Police and other participating agencies.
  • You can file your phone scam reports with the PhoneBusters (The Canadian Anti-Fraud Call Centre) 1-888-495-8501 (Toll Free) or send your email at info@phonebusters.com or Website: www.phonebusters.com
  • Or contact the Competition Bureau Canada, Phone: 1-800-348-5358, Website: www.cb-bc.gc.ca and Email: compbureau@cb-bc.gc.ca
  • It is also recommended that reports be also filed in the US with FBI www.ic3.gov/default.aspx and with the Federal Trade Commission (FTC),  or call toll-free, 1-877-FTC-HELP (1-877-382-4357) or Website: www.ftc.gov The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them.

Scam Origin:

If you surf online, you will find two same kind of views, like American websites or blogs mostly says fraud happened from Canada and Canadian says its been happened from American jurisdictions, although both are at the same risk of such loan fraud that can happen from their inside and outside both. What is the right answer? The most logical thing is this, fraud artists don’t have any country because these people don’t have any respect for their government laws as well as social values. Along with the emotional statement there is also other solid fact, which is making it difficult to determine where is the culprit. Advancement of our telecommunication through the satellite usage if helps us to carry our phone number to be used through out the world then it also has made any one guessing hard about the physical location of the scammer working its money snatching game, beside you can also receive calls through internet without highlighting any number in your CLI screen of your telephone set. Cross-border scams seem to be a growth industry; thousands of people are losing money every day by these international crooks and these scam artists operating their illegal act beyond the boundaries of the victim’s area make them advantage to an easy escape from the legal jurisdiction and also reduce the chances of money recovery. Although, there have been strongly working joint programs by these North American agencies to resolve this Cross-border fraud happening but it will not solve without the help of the consumers who are paying money to a person they even don’t know. It will definitely deliver more positive results and make it more efficient if the number of such fraud cases reduced and its only possible if most of the consumers understand that its against the law to promise or guarantee any loan which carry an advance fee.

Who is responsible?

Ignorance of law has no excuse! If it’s an illegal act to demand an upfront fee on cash advancing then paying make you responsible also. You need to ask yourself, why is this company, which I have never heard of, and which does not know me, willing to give me a loan? We have entered in to a great time when we no longer require any membership to get into a physical library to go and get the information or consult a professional about the knowledge we are looking for, this all require plenty of time and expenses to reach our goal. This internet provides instant solution to our everyday life’s issues and problems, if the topic you are looking for is not listed you can even make a question to get your answers. From more than a decay now it have been written online on this cash scam topic by the government and the private sector both with repeated same title as “Don’t Pay An Up-Front Fee” (search result found with Google which have reached to 72 million and Yahoo 27.4 million today), online scams awareness has been providing using various different platforms that alert the public to deceptive and fraudulent mass-marketed scams, but don’t know why consumers are not taking it seriously and loosing their hard earned money, there have been continue flow of such scam reports even daily with increasing numbers of people falling victim to a scam involving paying money upfront to unscrupulous loan companies for a loan that rarely materializes.

Whose fault is this? In fact responsibility goes to the scam artists and they should get caught for the legal actions and punishment but as a consumer you are equally responsible for the loss because you are paying money to a person without any legal documents and practice. Believe me scam artists are not changing their way of making fraud but they are continue working on the same old fashioned trick of making fraud that playing with the emotions, weakness, emergencies and difficult financial situations as giving you hopes to offer a solution to the money troubles, when other doors seem to be close, although the hope you will be given is false but money they are asking you to pay is real.

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