What is loan fee fraud?

Loan fee fraud is an attempt to scam individuals into paying an advance or upfront fee for a loan before any finance is received. If the fee is paid, the victim will never receive the loan originally offered.

Here are just some of the ways to prevent becoming a victim of loan fee fraud:

• Be wary of unsolicited or unexpected calls or emails, particularly if you have recently applied for a loan or used a loan comparison website.
• Never feel pressured to pay upfront fees or a deposit for a loan – no matter what the organisation supposedly promises.
• If you’re asked to pay through an unsecure webpage or via vouchers, this could be a scam, so be particularly vigilant.
• Always ensure any financial firm you deal with is authorised by the Financial Conduct Authority (FCA). Check the Financial Services Register and verify the contact details provided with the lender match the ones on the register.
• Verify the legitimacy of any financial firm you deal with by looking out for legal information, such as representative APRs. Legitimate lenders will have a secure website and will provide their physical address and contact details, too. They’ll also be transparent about their terms and will always conduct a credit check before making a decision on your application.
• If you have been the target of loan fee fraud, contact Action Fraud and report suspicious activity to the FCA.
  
  

Here at Novuna Personal Finance, we will never request any upfront payments at any stage. If you receive a similar request from anyone purporting to be Novuna, please do not pay any payments and please do not provide any personal bank account or card details. Report the incident immediately by contacting our team on 0344 375 5500 (lines are open 9am to 5pm, Monday to Friday) or by emailing securityteam@novuna.co.uk.

Visit the Financial Conduct Authority website for more information about loan fee fraud and how to spot it.

For other common loan-related fraud, visit our guide on the latest scams to look out for.