San Jose

Santa Clara County District Attorney's Office Warns of Advance Fee Loan Scam

The Santa Clara County District Attorney's Office is warning the public of a loan scam by callers who claim to be from companies with offices in San Jose.

The victim sends an advance fee or payment to the scammer, but the loan isn't made, according to district attorney's officials.

"No reputable loan company will ever ask you to make good faith payments up front, before they loan you the money," Deputy District Attorney Kim Connors said in a statement.

The scammers, who operate primarily in Canada, contact by phone or email potential borrowers and offer loans of $3,000 or more, district attorney's officials said.

The potential borrowers are asked to go to a "slick website" that offers services including personal loans, refinancing and mortgage loans for those with "good or bad credit," district attorney's officials said.

An address for a San Jose office listed on the websites exists, but the building doesn't offerloan-related services, according to the district attorney's office.

The suspects ask potential victims for money in advance before the loan is made, according to district attorney's officials.

In other cases, the scammers claim the victim must make the initial loan payments before the loan is made as proof that the borrower can make the payments, district attorney's officials said.

The scammers ask prospective borrowers to wire their money to Canada or Florida through companies such as Western Union and MoneyGram.

Once the victim, makes a payment, the scammers ask for additional money to finish the loan process, according to district attorney's officials.

Eventually the victims ask for their money back, but the scammers don't return their requests, district attorney's officials said.

The public is advised to check if a company is a state-licensed consumer finance lender through the California Department of Business Oversight online at http://www.dbo.ca.gov/FSD/Licensees.

Santa Clara County residents who believe they are a loan scam victim are asked to call the district attorney's office's real estate fraud hotline at (408) 792-2879.

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