Spotting Loan Scams
The five tricks fraudsters use most, and how to check who you're dealing with.
Loan scams target people at the moment they most need money, when it is easiest to overlook a warning sign. Knowing what to look for takes a few minutes, and it can protect both your money and your peace of mind.
Five Scams To Know
Upfront fee fraud
You're told your loan is approved or guaranteed, but must first pay an "admin" or "insurance" fee. The loan never comes. Read our guaranteed loans guide for how it plays out.
Clone firms
Criminals copy the name, address and FCA number of a real company, then contact you from different phone numbers, emails or websites. Quick Loans has been copied this way – see our fraud warning.
Social media lenders
Posts and private messages offering quick cash, often with a contact number or messaging app instead of a proper website. Genuine lenders don't arrange loans through comments and direct messages.
Loan sharks
Unlicensed lenders who may seem friendly at first, but charge huge interest, add charges at will, and can turn to threats. They may also take your bank card or ID "as security".
Cold calls and texts
Unexpected calls or messages offering a loan you never asked for. Treat any unsolicited loan offer as suspicious, however professional it sounds.
How To Check A Firm
- Search for the firm on the FCA Register to confirm it is authorised to offer loans.
- Contact the firm only using the phone number, email and website shown on the Register – not details given to you in a call, text or advert.
- Check the FCA's guidance on protecting yourself from scams and its warning list of firms to avoid.
- Never pay anything up front to receive a loan, and never share your online banking passwords or one-time codes.
If You've Been Caught Out
- Call your bank straight away. The quicker you act, the better the chance of stopping or recovering a payment.
- Report it. Report fraud to Action Fraud, or to Police Scotland on 101 if you live in Scotland. You can also tell the FCA about a scam firm.
- Loan shark? In England, call the Stop Loan Sharks team in confidence on 0300 555 2222, any time of day, or visit stoploansharks.co.uk. You won't get into trouble for having borrowed.
- Protect yourself. Change any passwords you shared, and check your credit file for applications you didn't make.
Loan Scam Questions
How can I tell if I'm really dealing with Quick Loans?
Quick Loans never cold calls, never charges a fee, and never asks you to pay anything up front. Our fraud warning page shows our real details and how to check them.
Is borrowing from a loan shark illegal for me?
No. Lending without authorisation is the crime, not borrowing. The Stop Loan Sharks team supports victims, and you won't be expected to pay the debt back.
Someone is using my details to apply for credit. What should I do?
Contact the lenders involved, report it as fraud, and ask the credit reference agencies to investigate. Our guide to fixing mistakes on your credit file explains the process.