THE CENTRAL BANK of Ireland is warning of a scam targetting consumers looking for cash loans from online providers. 

The Bank said it is seeing an increasing number of cases of advance fee fraud that targets customers of high cost credit providers (HCCPs). 

The scam targets consumers applying for cash loans, offering them a loan in exchange for an upfront fee or an administration fee to apply for a loan. 

High cost credit providers regulated by the Central Bank are not allowed to charge any administration fees to apply for a loan.

If you are dealing with a regulated HCCP, you will never have to pay a fee up front before getting a loan, or have to pay a fee to ‘release’ the loan or loan documentation, the Central Bank said. 

If you are asked to pay a fee, you should not use that provider as it is likely to be a scam.

If you share any payment details with these providers, you are at risk of losing significant amounts of money.

Some warning signs that a provider’s website is likely to be a scam include: 

• The provider does not state it is regulated by the Central Bank of Ireland.
• The website has promises of quick loans that try to push you into making a quick decision.
• It says there will be no ‘credit checks’ or promises to give loans to people with bad credit.

“This is an especially ruthless scam as it targets people looking for high cost credit, which is often used by people managing budgeting or other financial challenges,” Central Bank director of consumers protection Colm Kincaid said. 

“Beware of any firm that looks for an upfront fee from you. There are rules in place that mean no legitimate high cost credit provider can ever charge you an administration or application fee for a loan. If you are being charged a fee, you should immediately walk away and stop engaging with that firm,” Kincaid said. 

“In some cases, we have seen websites that have been cloned from legitimate providers. So even in cases where no fee is charged, you should still check our register to ensure the provider you are dealing with is regulated by the Central Bank, which provides you with a number of protections,” he said. 

“The Central Bank will continue to be vigilant to identify and deal with scams of this nature, and engage with An Garda Siochána to combat it.”