The National Credit Union Administration learned earlier this month of a fraudulent lending scheme by parties that claim to be credit unions. The scheme is done by placing false advertisements that offer to help potential customers with credit problems obtain loans such as, auto loans, home equity loans and debt consolidation loans.
The fraudulent advertisements have been indentified in newspapers in California, Colorado, Iowa, Missouri, Ohio, Pennsylvania and Washington. The ad provides a toll free 866 number that allows a potential customer to receive a free consultation with a loan officer.
The NCUA has warned that despite the legitimate appearance of the advertisement, it is not associated with any legitimate credit union. The ad is a ploy to get people to make an advance payment on a an alleged loan they are receiving.
The NCUA explained that the fraud is also having success due to the website being used. The fraudulent parties are using a website that is essentially a copy of a legitimate credit union’s site then adjusting the phone numbers with theirs.
In response to the fraud, the NCUA have been working with the Federal Bureau of Investigation. The administration also said that once an advertisement pops up and is recognized it has had success in putting an end to the activity.
The NCUA asks that if you have any information regarding this fraud, to call the NCUA Fraud Hotline at (703) 518-6550 or (800) 827-9650. Any persons who have been victimized by this fraud are urged to contact their credit union and the NCUA.
