Consolidating Financial Institution

In general, these types of companies advertise they can guarantee a loan for people with credit issues, but require an advance fee to do so. They claim the fees are necessary to secure the loan or will be used for other purposes such as processing, insurance, taxes, first payment, etc. The company may request your banking information to collect the fee from your account or many require payment by wire transfer, like Western Union, or they will instruct the borrower to load the fees onto a reloadable debit card or reload pack like Green Dot or Vanilla. Typically these companies tend to be fly-by-night operations. After scamming as many people as they can, they disappear, only to resurface later under a new name in order to swindle more unsuspecting individuals. In some cases, law enforcement may be able to shut down the operation.

In many states the practice of asking for or collecting advanced fees before issuing a loan is illegal and consumers should beware of any lender that requires advance fees. Legitimate lenders never "guarantee" or say that you are likely to get a loan or a credit before you apply, especially if you have credit issues.

We suggest you contact the regulatory agency in your state to confirm if the company is properly licensed or registered to provide these services in your state.