eLoan Financial Service-Loan Scam

ALERT: There is a Scam Watch article about this company. 

Advanced-fee loan scams often involve schemers offering loans, credit, or connection to guaranteed lenders in exchange for a fee paid in advance. The fees are typically claimed to be to secure the loan or for other purposes such as insurance, taxes, application fees, collateral, first payments, etc. Whatever the company calls the fee, consumers should beware of any lender or company that requires money to be paid before a loan is issued.  

Complaints typically allege after the upfront fees are paid no loan is ever issued and the company usually disappears. In some cases, instead of issuing the loan, the con artist requests additional fees to fund the loan claiming difficulty depositing the money or some other excuse. Or they may provide only a list of other companies where you can apply for loans. In the end, the borrower is left with no loan and unable to obtain a refund of the fees they paid in advance. 

Business Consumer Alliance (“BCA”) warns consumers of some of the telltale signs that you are dealing with an advance fee loan scam:

• Advanced fees are required before you receive a loan- Legitimate lenders don't require up-front payments before extending credit and they don't promise loans in their ads. Any up-front fee that the lender wants to collect before providing the loan is a sign to walk away. While legitimate lenders may charge application, appraisal, or credit report fees, these fees are typically prominently disclosed and clear. They are also usually taken from the amount borrowed and paid after the loan is approved.


• Lender is uninterested in your credit history- Be cautious of any ads that offer money without regard for credit or collateral. Your credit history is what lenders look at to evaluate your creditworthiness. If you do not have any credit history or have bad credit it is less than likely that a creditable company will lend you money. Ad statements like “Bad credit? No problem”, “We don’t care about your credit”, “No hassle-guaranteed money”, are tip offs that the offer is a scam.


• The offer is made over the phone- By law is illegal for companies doing business in the United States and Canada to promise a loan or guarantee a loan or credit and ask for payment before they deliver the funds.


• The lender is unlicensed- Loan brokers and lenders are required to register in the states they do business. Checking with your state’s Attorney General or financial regulatory agency will help weed out the companies that are not authorized to offer loans in your state. If the lender says they are affiliated with a licensed or well known institution, do your research to verify the information.


• The lender is using a name similar to a well- known company, entity, or agency-Criminals commonly use the name of recognized businesses or similar sounding names to trick consumers into trusting them. They have impersonated well-known entities and even gone so far as to create professional looking websites and produce forged paperwork to continue their ruse in order to appear legitimate. Contact directory assistance for a direct number to the company and double check that the business you are speaking with is the actual company. Many times, businesses that have been victims of identity theft where crooks spoof their name, logo, etc., place disclaimers on their website to alert consumers. Check for these.  Also, obtain the physical address of the business, not just the PO Box.


• The lender wants you to pay by wire transfer, reload pack, prepaid debit card, or to an individual-Scam artists like to use these payment methods to quickly gain access and steal money. These methods are preferred because it is difficult to trace and leave the victim little recourse if there is a problem. Also, never make a payment directly to an individual. Creditable lenders would not ask for you to do so, and as discussed before, you should not be required to pay before the loan is approved.