Monday, June 11, 2012

OPP Warn of On Line Loan Insurance Payment Scam

(Dufferin County, ON) Dufferin OPP has investigated two on-line loan scams in last few weeks.

A Dufferin County resident had filled out an online application for a $15,000 loan and two weeks later he was contacted by a male on the phone. The male provided him with a contact phone number.

The citizen contacted the male and was advised of the following:
  • he was approved for the loan but had to pay insurance fee of $500
  • the citizen sent 3 payments in amount of above fee at request of male suspect.
  • Each payment was made in cash through Money transfer business.
  • The citizen became suspicious regarding having to pay so much insurance.
  • He then attempted to contacted male who had approved the loan and has not been able to make contact. The male suspect has not returned calls
  • The wire transfers were picked up at in Ajax, Ontario

Dufferin OPP remind citizens of the following Helpful tips
    1. Ads that promise loans generally appear in classified sections of local and national newspapers, magazines and tabloids.
    2. Remember: simply advertising through recognized media outlets does not ensure the legitimacy of the company behind the ad. Some companies claim they can guarantee you a loan even if you have bad credit or no credit.
    3. They usually request an up front fee, which may range from hundreds to thousands of dollars.
    4. Once you send your money to these companies, you never get your promised loan and you cannot get your money back.
    5. If you cannot get a loan through traditional lending institutions, it is unlikely that you'll get one in response to a classified ad.
    6. Ask the loan company to take the amount of their fee off of the total amount of the loan
For more helpful tips visit the OPP website at

Contact: Provincial Constable Paul Nancekivell
Media Relations Officer

Phone: (519)-925-3838