43% of consumers will need credit before the end of this year

The company says that Christmas is already an expensive time of year and scammers know that many people struggle financially and turn to borrowing to get them through. With the pandemic already causing havoc on peoples’ finances this year, there are real concerns over how desperate people are to obtain credit, and therefore what kind of loans they’ll be applying for.

The main reasons for this include:

• Fear over redundancy or job loss
• To cover costs when payment holidays end
• To cover the costs of Christmas.

Holly Andrews, Managing Director at KIS Finance said “Loan scams are particularly rife during the festive season, but it’s a particular concern this year with so many people already saying that they will need to apply for some kind of credit facility to get them through.”

“Scammers target their victims through phishing emails, text messages, and online adverts. They will advertise loans at very low-interest rates and push the fact that there are no credit checks and that you’ll receive the money within hours. The catch, however, is that you’ll have to pay an advance fee when you apply. Sometimes this is a one-off fee, but sometimes they can catch people out with a string of fees by claiming that payment is needed for each stage of the application process. They will ask you to pay this fee via bank transfer as there is no protection for you once you’ve authorised the payment. ”

“Any loan being provided by a legitimate company will not require an upfront fee – and the fees certainly won’t be hidden. Any charges or interest that you are required to pay will be laid out clearly and will only be payable once you’ve been through the application process and agreed to the loan.”