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Nice Fridays: Stopping Loan Scams with a Simple Demand

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Each Friday, we like to take a minute to focus on some positive news in the credit world. This week, it is a loan scam case with a happy outcome. I love a good story of an everyday person smartly thwarting a loan scam. Tracy stood up for herself, made a simple request and stopped the scammers dead in their tracks:

I was contacted by Raymond Sheppard of Hillsdale Financial Group based in Orlando Florida.  He told me I was approved for a $9,000 loan with a 6% interest.  I was a little surprised that I could have gotten that low of an interest when my debt to income ratio was so high already.  All I would need to do first is to send him $1300 for 5 months collateral which would be applied directly to the loan.  I would then start to repay the loan back starting in August for a total of 36 months at $270. 

I informed him that I was not going to send his any money via Western Union or Money gram. If this was legitimate, I would either have my bank wire the money, send a certify check, or have it directly withdrawn from my accounts as to leave a trail in case this was a scam.  I think this threw him off because he was suppose to call me back ASAP to inform me how to send him the money.  I called him the next day and he did not answer or return my phone call. 

In the meantime I did some research and found other people posting with similar cases involving the same company.  I will not be a fool.

Well done, Tracy! This is a great lesson for anyone who might be contacted by a loan scam. Ask tough questions and refuse to wire transfer any funds.The loan fraudster will drop you like a hot potato.

Emily PetersCredit.com's personal finance expert and former TransUnion credit bureau insider. Emily writes about credit reports, credit cards, loans and personal finance as the CreditBloggers.com editor.


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