What is an advance fee personal loan ?

Advance fee personal loans are illegal in many states, and for a good reason. This is how and

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advance fee personal loan scam works. Scam artists posing as legitimate lenders promise you that you are guaranteed, or almost-guaranteed, to get an unsecured personal loan from them, or their supposed network of lenders, but you have to pay them or some third party a "processing fee" in advance. The advance fee can be any amount but $100 to $300 seem to be the most common.

You may be required to answer credit related questions over the telephone, or even ( mortgage quotes ) fill out a standard credit application. The scammer on the other end of the telephone will be friendly and sound like he knows what he is talking about. Everything looks legit and unless you took the time to do a complete background check you would never know that you were being set up.

Many advance fee personal loan ( mortgages ) scammers have moved out of the US to set up shop in Canada. They advertise cheap loans, bad credit loans, and unsecured loans in the classified section of daily newspapers and in magazines. These ads often feature toll-free 800, 866, or 877 numbers, or area codes from Canada, such as 416, 647, 905, or 705. If you think about it for a minute, why would a legitimate Canadian lender be more likely to make high risk loans than ( secured loans ) a US lender when the cost of collection will be higher?

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