STOP! – Protect yourself from loan fee fraud

The cost of living crisis is exerting more pressure than ever on people’s finances, with 55% of UK adults more worried about money this year than last year.

Sadly, there are scammers out there looking to make it even harder.

Loan fee fraud is an increasingly common scam, where people are asked to pay an upfront fee but then never receive the loan.

Now, it’s even more important to take a moment if you are looking for a loan.

Pause and do the 3-step check before you make any decision and avoid the scammers.

• Cold called?
• Asked to pay an upfront fee?
• Pressured to pay quickly or unusually?

Tick any of these? STOP Protect yourself from loan fee fraud.

What else can you do to protect yourself?

Always check the Financial Services Register to make sure the firm you’re planning to borrow off is regulated. You should only deal with FCA authorised firms. This makes sure you’re covered by the Financial Ombudsman if anything goes wrong.

What to do if you think you’ve been a victim of loan fee fraud

If you think you have been contacted by a fraudster, or unauthorized firm, you should report it to the FCA here.

If it seems untrustworthy, it probably is. It is always better to be safe than sorry.

Good to know

The Co-op Credit Union is a responsible lender and will never ask you to pay a fee to assess or to pay your loan to you.

We are regulated by the FCA and Prudential Regulation Authority (PRA), so you can be assured that we work to the highest standard. We are also protected by the Financial Services Compensation Scheme (FSCS) meaning your money is always safe with us.