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You may have received telephone calls promoting low interest rate loans or loan applications highlighting “no success, no fee”. Beware of offers that sound too good to be true as these might be some of the common tricks used in loan intermediary scams.

The unscrupulous loan intermediary may make the following offers:

  • Help you obtain a low interest rate loan
  • Tell you that there will not be a fee if your loan application is unsuccessful
  • Help you apply for loan and settle your other debts simultaneously
  • Help you restructure your loan, claiming that he/she works for a bank or the government and point out there is something wrong with your loan or property mortgage
After you sign the contract for the service, the loan intermediary will charge you very high handling fee or interest even if your loan application fails eventually.

Advices for fraud prevention

  • Do not believe callers easily. If they claim that they work for or represent a bank, financial company and even the government, you should call the related institution to check their authenticity. Banks or mortgage companies will never request their clients to borrow money from another finance company to repay existing loans.
  • You should only borrow from banks and reputable financial companies.
  • Do not withdraw large amounts of cash when getting the loan. Get a cheque or bank transfer to keep record.
  • Read the content and terms of the contract carefully before signing.
  • If you think you have been tricked, report to the Police immediately.

The information in this section comes from Fight Scams Together. This is provided by the Hong Kong Police Force to prevent fraud. Go to the website for the latest scam information.