Victory State Bank: Beware Advance-Fee Loan Scams
STATEN ISLAND, N.Y. -- You may be tempted by ads that guarantee loans or credit cards -- regardless of your credit history.
The catch comes when you find out you have to pay a fee in advance, warns the Federal Trade Commission (FTC), http://www.ftc.gov/bcp/index.shtml.
Victory State Bank suggests borrowers be on the lookout for the following red flags posted by the FTC:
A lender who isn’t interested in your credit history
A lender may offer loans or credit cards for many purposes — for example, so a borrower can start a business or consolidate bill payments. But one who doesn’t care about your credit record should give you cause for concern.
Ads that say “Bad credit? No problem” or “We don’t care about your past. You deserve a loan” or “Get money fast” or even “No hassle — guaranteed” often indicate a scam.
Banks and other legitimate lenders generally evaluate creditworthiness and confirm the information in an application before they guarantee firm offers of credit — even to creditworthy consumers.
Fees that are not disclosed clearly or prominently
Scam lenders may say you’ve been approved for a loan, then call or email demanding a fee before you can get the money. Any up-front fee that the lender wants to collect before granting the loan is a cue to walk away, especially if you’re told it’s for “insurance,” “processing,” or just “paperwork.”
Legitimate lenders often charge application, appraisal, or credit report fees.
The differences? They disclose their fees clearly and prominently; they take their fees from the amount you borrow; and the fees usually are paid to the lender or broker after the loan is approved.
It’s also a warning sign if a lender says they won’t check your credit history, yet asks for your personal information, such as your Social Security number or bank account number.
They may use your information to debit your bank account to pay a fee they’re hiding.
A loan that is offered by phone
It is illegal for companies doing business in the U.S. by phone to promise you a loan and ask you to pay for it before they deliver.
About Victory State Bank:
VSB Bancorp, Inc. (NASDAQ: VSBN) is the one-bank holding company for Victory State Bank. As Staten Island, N.Y.’s only community-based commercial bank, Victory State Bank operates five full-service locations on the Island: The main office in the community of Great Kills, and branches in the communities of West Brighton, St. George, Dongan Hills and Rosebank. For additional information, Victory State Bank may be reached at 718-979-1100 or visited online http://www.victorystatebank.com .
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