“Guaranteed approval”: the upfront-fee scheme
Short answer
A demand for payment before the loan is disbursed — an “approval fee”, “insurance” or “guarantee” — is the main marker of a fraudulent scheme, because genuine credit costs are deducted or paid after the agreement is concluded.
Why “guaranteed approval” is an impossible promise
A lender is required to assess creditworthiness before granting credit. A promise of approval without any check contradicts the logic of lending itself — and usually comes from someone who has no intention of lending at all.
The markers that keep repeating
Payment to a personal account or through a fast-transfer service; pressure to hurry; contact only through a messenger; no full company name or company number; a contract that will be “sent later”; disappearance after the first payment, accompanied by a request for a second.
What to do if money has already been paid
Document the payment — statement, correspondence, the advert. Report it to the police, and where a commercial practice is involved, to the Consumer Protection Commission as well. Recovery depends on the payment method and on whether the recipient can be identified.
Frequently asked questions
- Can a legitimate lender ask for money in advance?
- Credit costs are normally deducted from the amount or paid under the agreement after it is concluded. Payment to a personal account before a signed contract is a signal to check, not standard practice.
- How do I check the other side?
- By full company name and company number — in the commercial register and in the register of financial institutions. The absence of those details in the communication is itself telling.
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