Loan Scams
Get in touchAt Scam Claims, we specialise in supporting victims and across the UK who have been targeted by fraudulent lenders or tricked into paying upfront charges for loans that never materialise.
These scams exploit financial vulnerability by offering quick access to credit with guaranteed approval, only to disappear once fees are paid.
Loan scams – cause – financial loss, leaving many people in debt, distressed, and without the financial support they were promised.
Our solicitors focus on helping victims recover lost funds, challenge banks that failed to block fraudulent payments, and bring accountability to scam operations.
How Do Loan Scams Affect Victims?
Loan scams happen when victims are told they are pre-approved for a loan but must pay an upfront charge for insurance, processing, or early release of funds.
This practice is known as advance fee fraud, and once the payment is made, the fraudsters disappear without providing the loan.
The effect is twofold: financial losses can quickly escalate, and victims are often left with damaged credit or increased desperation for funds, making them vulnerable to repeat targeting by other scams.
Which Types of Loan Scams and Advance Fee Fraud Are Most Common Across ?
The most common loan scams and Advance Fee Fraud schemes include:
Advance Fee Fraud schemes – Victims are persuaded to pay upfront “release fees” for loans that never arrive.
Fake payday loans – Fraudsters pose as short-term lenders, taking advance payments without issuing funds.
Fraudulent guarantor loans – Criminals demand fees for supposed guarantor-backed loans, leaving victims without money or credit.
Personal loan scams – Cloned websites of well-known lenders trick applicants into paying application or processing charges.
Business loan scams – SMEs in urgent need of funding are targeted with fake offers of fast finance.
Investment-style loan frauds – Victims are promised high returns from “guaranteed” loan-linked investments that never exist.
How Much Do People in or Around Typically Lose to Fake Loan Offers?
The financial impact of loan scams varies, but most victims report losing between £200 and £2,500 in upfront fees. However, some cases involving multiple payments or larger supposed “guaranteed loans” have seen losses in excess of £10,000.
Loan scams, also known as advance fee fraud, cause financial loss because once funds are transferred, they are usually redirected through international accounts, making them difficult to trace.
Can Victims Recover Money Lost to Loan Fraud or Upfront Fee Scams?
Victims can sometimes recover funds lost to loan scams, particularly if payments were made via credit card or bank transfer. Section 75 of the Consumer Credit Act and chargeback schemes can provide routes to reclaiming funds if the bank failed to intervene when suspicious activity occurred.
Solicitors specialising in fraud can also escalate cases through the Financial Ombudsman Service, which has the authority to order banks to refund victims if proper safeguards were not in place.
Contact Scam Claims for a plan to recover your scammed money.
How Do Lawyers Work With Banks and Regulators to Trace and Recover Funds?
Lawyers often work closely with banks and financial regulators to trace the movement of money in loan scam cases. By submitting urgent recall requests and investigating the destination of transfers, they can sometimes intercept payments before they are fully withdrawn.
Where funds have already been transferred overseas, solicitors may collaborate with international agencies to track them further. Regulators such as the Financial Conduct Authority (FCA) and the Financial Ombudsman Service play a key role in enforcing accountability.
Are No Win, No Fee Options Available for Loan Scam Claims?
Our fraud solicitors provide no-win, no-fee arrangements for loan scam cases. This model is particularly important for victims who have already lost significant sums, as it removes the risk of further financial strain.
Under this arrangement, clients only pay solicitors’ fees if compensation is successfully recovered, making legal support more accessible to those in need.
What’s the Process for Filing a Compensation Claim for Loan Scams Near ?
The process of a loan scam begins with a consultation where the victim shares details of the scam and provides evidence of payments made. Solicitors then analyse the information and advise on the strongest route for recovery, whether through the victim’s bank, credit provider, or regulatory complaint.
If initial claims are unsuccessful, the case may be escalated to the Financial Ombudsman Service for independent review.
What Legal Support Do Fraud Solicitors Provide for Advance Fee Fraud Cases?
Fraud solicitors provide tailored legal support for victims of Advance Fee Fraud and loan scams, including:
Evidence collection – Gathering transaction details, emails, and fraudulent contracts to build a case.
Bank challenges – Holding banks accountable when they fail to act under Authorised Push Payment (APP) fraud protections.
Regulatory escalation – Presenting evidence to financial regulators to establish liability.
Dispute handling – Escalating rejected claims through the Financial Ombudsman Service or other authorities.
Specialist legal advice – Using expertise in financial fraud cases to identify the strongest recovery routes.
Maximising recovery chances – Combining legal strategies to ensure victims’ claims are properly heard and pursued.
Do Loan Scam Solicitors Handle Both UK and International Fraud Cases?
Loan scam solicitors regularly handle both domestic and international cases. UK-based scams usually involve cloned websites of well-known lenders or fraudulent payday loan companies, while international scams often use offshore accounts and sophisticated digital operations to bypass detection.
Regardless of jurisdiction, solicitors can pursue banks, regulators, and in some cases, overseas financial authorities to trace funds.
Contact Scam Claim Solicitors for a consultation on getting support on loan scam issues.
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