http://www.ftc.gov/bcp/conline/pubs/tmarkg/loans.htm
Charging an advance fee for a loan is illegal in the US and in Canada. What are the laws like in other countries (for example, the UK)?
2007-03-28 05:31:33 · 4 answers · asked by Matti 4 in Business & Finance ➔ Credit
The FTC site states, "Don’t pay for the promise of a loan. It’s illegal for companies doing business by phone in the U.S. to promise you a loan and ask you to pay for it before they deliver. Requiring advance fees for loans also is illegal in Canada."
2007-03-29 00:55:15 · update #1
Hi Steve... didn't you formerly own Lexigton Loan Company? http://pay-for-loans.blogspot.com/2007/03/steve-collins-and-lexigton-loan-lender.html
2007-03-31 05:42:01 · update #2
They're not illegal in the U.S. I don't know if they are in Canada or the U.K.
The website you posted warns people about them but no where does it say they're illegal. I post that website all the time warning people not to pay money up front for a loan. But it's a warning that you're likely to get scammed. There is nothing illegal about a lender charging an advance fee though. I personally wouldn't pay an up front fee. But it's entirely possible there are some advance fee lenders out there that are legitimate.
2007-03-28 05:54:38 · answer #1 · answered by Faye H 6 · 4⤊ 0⤋
They do have a right to charge an application fee. But I would not even pay that. They usually just add that fee to the loan anyway!
2007-04-02 13:36:18 · answer #2 · answered by Miss Know It All 6 · 0⤊ 0⤋
hi
2007-04-02 11:11:17 · answer #3 · answered by FireStone 2 · 0⤊ 2⤋
i think it's illegal
2007-03-28 05:34:21 · answer #4 · answered by Anonymous · 0⤊ 3⤋