COLUMBUS — The Ohio Department of Commerce warns Ohioans to be on guard against companies that offer loans that require advance fees.\u00a0These \u201ccompanies,\u201d which typically solicit customers on their websites, may appear to have a business address in Ohio, but it is often fictitious.<\/p>\n
\u201cIf a loan company demands money before you receive a loan, don\u2019t even think about it,\u201d said David Goodman, director of the Ohio Department of Commerce.\u00a0\u201cNever send money with the promise that you will obtain a loan.\u00a0If you do, you\u2019ll lose your money and there will be no loan.\u201d<\/p>\n
These companies operate under a variety of names that are frequently changing, Goodman noted. Their websites may push consumers to call a toll-free number.\u00a0Often it traces back to Canada.<\/p>\n
In a typical advance fee loan scam, financial information is solicited from the caller. Before the loan can be processed, they say, the consumer needs to make a down payment or purchase special mortgage insurance.\u00a0The consumer is then instructed to send money out-of-state or to Canada to cover those costs.<\/p>\n
Director Goodman offers the following tips to Ohioans:<\/p>\n
Always check to see if the financial service is licensed by the Division of Financial Institutions (go to www.com.ohio.gov\/fiin\/elicense.aspx<\/a> to learn if it is licensed or call the Consumer Affairs Hotline at 866.278.0003.)<\/p>\n Never provide personal or financial information to a company that is not properly licensed.<\/p>\n Never send money in advance of receiving a loan (other than for an appraisal report or possibly a credit report.)<\/p>\n