“Dear Steve,

I am Mary an expat in Dubai. Ive been working here for almost 7 years. I have read your advices how to get out of debt. I have loans and credit cards here but unfortunately, It came to a point that i cannot pay even the minimum dues for my credit cards that’s wny im really having pressure from the debt collectors and it is really stressful. As much as i wanted to apply for a loan or a top up loan here in dubai, to close these cards, i cant do anymore. Due to global recession, banks became stricter in their requirements especially the salary. I am just an average employee here, and my salary does not qualify anymore to any loans.

That’s why i tried to apply loan through the internet. now, I ve been communicating online to a person claiming that he and his company is a legit lender. I already send some proof of identification but im not sending any of my account details yet. Recently, he send me an email saying that my loan is approve but before sending the money to my account here, (since, lender is from ecuador) i need to pay a fee called a LOAN ORIGINATION FEE which is 1.5% of the total loan.

My question is, is there really a loan happening online?

Is there really a fee called LOAN ORIGINATION FEE?

How will i know if he is a legit lender and not a scam?

Pls. see lender’s Details:

Mr. Bill Cox

Company Name: Micro Finance Company
( Bill Financial Loan Company)
Address: N39-234 y Gaspar de Villarroel Edificio Zambrano Quito.
Country: Ecuador
Email: billcoxfinancial@mail2finance.com billcoxfinancial@yahoo.com

Mary”

The Answer

Dear Mary,

Let me assure you, this is a scam. The first warning sign are the free email address that the supposed loan guy gives you to contact him on.

You are a prime scam target. You are in a bind, hunting for a loan that no legitimate lender will give you, and willing to do just about anything for a loan.

Scammers will eagerly prey on you. They will promise you a loan but will ask for some upfront fee and ask you to send it via wire transfer or Western Union.

Another tip off that this is a scam is the fact that the lender asked you only for cursory information and did not make you complete an official loan application.