FCA Launch Loan Fee Fraud Campaign

Friday 26 January 2024

This summer, the cost-of-living crisis is exerting more pressure on people’s finances, with the FCA reporting 55% of UK adults more worried about money this year than last. The FCA predict more people will be looking for loans from unregulated provides, with a concern this will lead to an increase in loan fee fraud.

To combat and raise awareness of this crime, the FCA has launched a campaign to increase awareness of this scam.

With the strain of the summer holidays, the FCA predict more people will be looking for loans from unregulated providers. Our concern is that these people may be vulnerable to loan fee fraud, one of the most common types of scam reported to the FCA where consumers pay an advance fee for a loan which they never receive. Unfortunately, those most vulnerable to this type of fraud are often the people who can least afford it.

The campaign encourages people to pause and check the following:

• –        Have you been cold called or emailed?
• –        Have you been asked to pay an upfront fee?
• –        Have you been pressured to pay quickly or unusually?

Stated in the FCA toolkit, the regulator states: “We aim to explain what loan fee fraud is and the steps that people need to take to protect themselves from it. Thank you for supporting this important campaign. With your help we can raise awareness of this scam and help more people protect themselves.

“With your help we can prevent more people from falling victim to loan fee fraud scams”.

To get involved in the campaign and protect consumers from the scam, use the free toolkit of assets (including social media posts, staff briefing documents, posters and more) available to download in this here.