Consumers in the UK are being warned to be on the lookout for fake
personal loans which are currently being offered by bogus companies.
According to the Citizens Advice Bureau, the number of organisations offering loans for a fee has dramatically increased.
The group advised any potential borrowers to only deal with reputable companies as to avoid the fraudsters.
In particular,
personal loans which are advertised on the internet only or through cold calling and text message should be approached with caution.
Citizens Advice director of policy Teresa Perchard said bogus companies are taking advantage of borrowers who may be vulnerable as a result of the economic downturn.
"In the recession loans can be hard to get and people falling into debt or unable to get mainstream credit are being targeted with ads and direct contacts," she commented.
Consumers were also warned that getting involved with fraudulent companies can have disastrous financial consequences.
Ms Perchard pointed out that some victims have even had money disappear from their
current accounts after applying for a
personal loan from a bogus lender.
