AJ Bell press comment – 14 December 2022
Laura Suter, head of personal finance at AJ Bell, comments on the FCA warnings on loan fee scams:
“Fraudsters like to prey on people in tough situations, so the combination of Christmas financial pressures and the cost-of-living crisis is a utopia for scammers. Lots of people will be rushing to do their Christmas shopping and struggling to afford it, which is the ideal time-pressured situation for scammers to thrive.
“Thanks to the cost-of-living crisis we’ve already seen an increase in all manner of scams, from fake investment schemes to crypto trading scams or pension liberation schemes. Quick decisions people make in minutes can lead to a lifetime of pain if they end up being scammed out of their money in costly fraudulent schemes.
“Anyone using debt to pay for Christmas, or just the rising cost of living, should make sure they carry out checks before signing up, rather than rushing into the first option. Whether it’s falling foul of loan fee scams or just ending up with very expensive debt, it definitely pays to take some time to avoid costly mistakes.
“Check that any debt or loan is from a reputable provider and is FCA registered, check you’re not being expected to pay high fees and make sure you shop around for the lowest rate you can get. It’s also important to ignore anyone who contacts you out of the blue, whether that’s by email, text or on the phone.”
