Apr 11, 2015
Read this:
"It is illegal for companies doing business by phone in the U.S. to promise you a loan or credit card and ask you to pay for it before they deliver."
http://www.consumer.ftc.gov/articles/0078-advance-fee-loans
If you or a friend need a loan, you really should read this:
http://www.consumer.ftc.gov/articles/0153-choosing-credit-counselor
In fact, the more you need the money, the more urgent it is to read that information!
Protect yourself!
Recognize that NO legitimate company is going to offer you a loan, without their doing some background / credit checks on you, and they WILL generally need a snailmailed, signed contract.
If you or a friend fell for the scam, please try to educate your other friends. The only way to stop these scams is to cut off their source of money!
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History of the scam:
Some time in the 16th century (yep, the 16th century), some enterprising scammers devised the "Spanish Prisoner" scam. Marks were promised a significant reward, if they contributed money to get the "very rich prisoner" out of a Spanish jail.
If the mark sent money, the scammer replied with some excuse that more money was needed, because something happened. The scammer would continue with excuses and demands for more money, 'till the mark was broke, or wised up to the scam.
A variation of this scam exists TODAY, some 5 centuries later. It is called an "Advance Fee Scam". It remains successful because some folks are easily duped, or think they can get a very high reward for minimal investment.