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Home » Type of scams » Loan Fee Scams

Loan Fee Scams

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Table Of Contents

Table Of Contents

Introduction to Loan Fee Scams

Loan fee scams are fraudulent schemes designed to trick individuals in need of a loan into paying an upfront fee or providing personal information, only for the promised loan to never materialize. These scams often prey on individuals with poor credit, as they may have difficulty obtaining loans through traditional means.

By understanding how loan fee scams work and recognizing the red flags, you can protect yourself and avoid falling victim to these scams.

How Loan Fee Scams Work

Loan fee scams typically involve scammers posing as loan providers or brokers, offering loans with attractive terms, low interest rates, and quick approval processes. Once the victim is interested, the scammer will request an upfront fee, often disguised as a processing fee, insurance, or some other charge.

The victim may also be asked to provide personal information, such as their Social Security number or bank account details. Once the fee is paid or the information is provided, the scammer disappears, and the victim is left without a loan and out of pocket for the upfront fee.

Red Flags for Loan Fee Scams

Unsolicited Contact

Be cautious if you receive unsolicited contact from a loan provider or broker, as scammers often use cold calls, emails, or social media messages to target potential victims.

Upfront Fees

Legitimate lenders will not require you to pay an upfront fee before providing a loan. Fees, if any, are usually deducted from the loan amount or incorporated into the repayment terms. If a lender asks for an upfront fee, it’s a red flag for a scam.

Guaranteed Approval

No lender can guarantee loan approval without first reviewing your credit history, income, and other relevant factors. Be wary of lenders who promise guaranteed approval, as this is often a sign of a scam.

No Credit Check

Legitimate lenders will perform a credit check before approving a loan to assess your creditworthiness. If a lender offers a loan without a credit check, it’s likely a scam.

High-Pressure Sales Tactics

Scammers may use high-pressure sales tactics to push you into making a decision quickly without thoroughly researching the lender. Be cautious if you’re being rushed or pressured to provide payment or personal information.

Protecting Yourself from Loan Fee Scams

Do Your Research

Before applying for a loan, research the lender or broker to verify their legitimacy. Look for reviews, news articles, and regulatory filings to help confirm their legitimacy.

Check for Licensing and Registration

Lenders and brokers are required to be licensed and registered with regulatory authorities. Always verify the licensing and registration status of any lender or broker offering loans.

Be Wary of Upfront Fees

Legitimate lenders will not require you to pay an upfront fee before providing a loan. If a lender asks for an upfront fee, it’s a red flag for a scam.

Understand the Loan Terms

Make sure you understand the loan terms, including interest rates, fees, and repayment terms. If you’re unsure or have questions, consult with a trusted financial advisor or professional.

Don’t Be Afraid to Walk Away

If a loan offer doesn’t feel right, trust your instincts and walk away. It’s better to miss out on a potential opportunity than to fall victim to a scam.


Loan fee scams are a serious threat to individuals seeking loans, especially those with poor credit. By understanding how these scams work and recognizing the red flags, you can protect yourself and avoid falling victim.

Always do your research, verify the legitimacy of the lender or broker, be wary of upfront fees, understand the loan terms, and don’t be afraid to walk away. With diligence and caution, you can make informed loan decisions and avoid falling victim to scams.


How can I protect myself from loan fee scams?

To protect yourself from loan fee scams, do thorough research, verify the lender’s licensing and registration, be cautious of upfront fees, understand the loan terms, and don’t be afraid to walk away if something feels off.

What should I do if I suspect a loan fee scam?

If you suspect a loan fee scam, report it to the appropriate authorities, such as the Federal Trade Commission (FTC) or your state’s attorney general office. You can also share your concerns with a trusted financial advisor or professional for guidance.

Can I recover money lost to a loan fee scam?

Recovering money lost to a loan fee scam can be challenging and often depends on the specific circumstances. If you’ve fallen victim to a scam, report it to the appropriate authorities and consult with a lawyer or financial professional for advice on your options.

What are some red flags for loan fee scams?

Red flags for loan fee scams include unsolicited contact, upfront fees, guaranteed approval, no credit check, and high-pressure sales tactics. Always be cautious and do your research when encountering any of these red flags.

Can loan fee scams be avoided?

Yes, loan fee scams can be avoided by staying informed, researching lenders, verifying their licensing and registration, understanding the loan terms, and trusting your instincts. Being cautious and diligent can help you make informed loan decisions and avoid scams.

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    BEST CAPITAL INTERNATIONAL LIMITED CR No.: 0781802 also known as Bestfine Capital (BCHK) is a company of scammers who are skilled at extracting large sums of money from unsuspecting victims. (https://bestcapital.hk/)

    I would like to inform you that you should not contact this company because they are scammers.
    If they have promised you that you will get a loan from them, the only thing you can be sure of is that you will lose all your money.

    Let me tell you what the big secret of these scam companies is.
    They ask for a fund to send them as (for bank charges, processing, and handling costs of the loan) with the promise of giving you a loan in the further.
    They are a company and you will find out if your search at the Hong Kong Registrar of Companies. (However, this is no guarantee that they are a trustworthy company). If you think they have an “AMLO” money lender license, ask them to send it to you and check the licence on the Hong Kong Monetary Authority website. However, be careful. The licence must be issued in the name of the company promising to give you a loan, i.e. the lender, not another company. Is this a trap or have they copied the licence of another licensed company money lender?

    Most of these scam companies do not have a money lending licence as required by the Money Lenders Ordinance (Chapter 163 of the Laws of Hong Kong). This is a major headache for the authorities and even the Hong Kong Police.
    If you never want to lose money to those Hong Kong finance companies who tell you and promise you that they are offering loans when you sign the agreement with them, do the following.

    Usually, once you have signed the agreement, they will ask you to send the advance you have accepted, depending on the amount of loan you have applied for, within 3 days by Swift MT103.
    To convince you that everything is in order, they will send you a document called “Advance Payment Guarantee or (APG)” or some other name, written on their company letterhead, which they will show you is signed and stamped by an official of the bank they claim to be their provider and guarantor of your advance. If you ask them why this “Advance Payment Guarantee” is written on their company letterhead, they will tell you that the bank has authorised them to do so. THIS IS A BIG LIE, and therein lies the big trap.

    – No bank authorises external partners to send bank guarantees on its behalf, and especially for an independent Chinese company limited. But this is how they deceive people/borrowers and steal the advances.
    – Moreover, if you contact the bank that is supposed to guarantee the return of the advance, fast you will find that they have no knowledge of it. You will also find that this communication with the bank is forbidden in the agreement you sign with the fraudulent lender. You may ask why? (So that you don’t discover the fraud before you send the deposit). That’s why they don’t give you much time in the agreement, so that you don’t have time to contact the bank and get a reply.

    DO NOT accept any “advance payment guarantee” signed by any company or fake bank employee, unless it comes directly from the bank to ensure you get your money back if anything goes wrong. If you insist on getting an advance payment guarantee signed directly by their bank before sending any money, they will come up with a thousand excuses like it will take too long etc. to convince you…
    WARNING: If you give in and send money, you’ll lose your money and get no refund because your money will be credited to a (third party) account that you will see them using in the agreement you signed with them.
    – If they send you a genuine payment guarantee from their bank, then you can proceed. But before you send any money, make sure it’s really from their bank.

    If you do not take these steps, one thing is certain. That they will steal your advance/money and then keep asking you for money, using any excuse to take as much as they can from you until you have lost a significant amount of money and they move on to the next victim, ignoring you. Usually, these excuses are that there is a new charge from a Chinese organisation or the bank, or accumulated fees, or an intermediary bank, which is not the case because it is all a lie.

    Make no mistake, almost all of these companies are scams. If you look them up, they may be registered with the Registrar of Companies in Hong Kong with a paltry share capital of no more than 5,000 or 10,000 Chinese dollars and no assets so that your lawyer can take them to court and force them to pay back the money they have stolen from you. They cannot offer loans under any circumstances. What bank will trust them to do business with them? Think before you decide to lose your money!

    Needless to say, I have strong evidence for everything I have written and I challenge this company to prove to you, before you become the next victim of fraud, that there is even one borrower who has received a loan from them.
    They will claim that this is protected by commercial confidentiality. So, tell them that since they want you to trust them first, if they have signed a loan agreement with you, they can trust you and transfer the loan to your account first by deducting the down payment from the loan principal. They will tell you that this is not possible.
    All approved loans from legitimate lending companies have a unique ID and are registered with the International Chamber of Commerce: ICC. So ask them to send you the ICC record of your loan application. They simply won’t do it and you will be saved from the scammers.

    If you are serious about getting a loan, look for a finance company that has a Licensing of Money Lender in its name from the Governing Authorities in Hong Kong. Only then will you have a chance of getting your loan.

    #BestCapital #BestfineCapital #Scammers #Fraud #ScamCompany #HongKongScammers