The fraudster sends letters and emails to entice people who are already indebted to seemingly better terms for refinancing. If you contact the sender, you will be told that you were not qualified because of your existing debt, and that you can delete that record by paying a guarantee fee. This is a very malicious scam, which preys on the weakness of the victim.
- Financial institutions never ask customers to remit money for a guarantee fee or to delete the record of indebtedness. You should never be fooled by the enticing wording, but stay level-headed.
- In some cases, the fraudster pretends to represent a real financial institution or money lender, using the trade name, registration number or logo. In such a case, you should check the website of the company. You should be cautious if you see a warning message or an actual fraud case saying, "Beware of fraudsters who pretend to represent us."
- If you are asked to pay a guarantee fee, contact the police or the consumer service center.
- "A call from a debt collector?"
Mr. A had borrowings from a number of money lenders, and tried to contact a new lender that he saw in a flyer. Mr. A was told, "You are not qualified, because the records show that you are already heavily indebted. But, if you pay the fee for the guarantee corporation to delete the indebtedness data, you can borrow from us." If you think with a calm mind, it is not likely that a legitimate money lender requires an upfront payment to make a loan. However, Mr. A was desperate and paid the fee as instructed.
- The terms are unrealistically good.
- The fraudster is taking advantage of the weakness of an indebted person.
- The fraudster hurries the victim.
