Loan fee fraud is an increasingly common scam that is reported to the Financial Conduct Authority (FCA), with people losing £220 each on average.

The ‘loan provider’ will tell you that your loan is approved and then ask you to pay an upfront fee before the loan amount can be released.

They then take the payment but never provide you with the loan.

What you can do:

Always be wary of unsolicited approaches about loans and don’t click on links offering them. It’s also highly unusual to be asked to make a payment to a lender before you’ve been given a loan.

If you’re considering taking out a loan from a company you’ve never heard of, check the FCA Register to see whether the company you’re dealing with is authorised and stay well clear if it’s not.

You can always contact your local credit union and apply for a loan, Credit Unions are one of the most reliable sources for borrowing a loan.

You can learn more about Thamesbank’s loan products here.