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HomeTop Business NewsCentral Bank Sounds Alarm on Moneylending Scam Threat

Central Bank Sounds Alarm on Moneylending Scam Threat

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The Central Bank of Ireland has issued a warning about a moneylending scam that is targeting vulnerable individuals. The scam involves fraudulent lenders offering loans at high interest rates and then demanding upfront fees from borrowers. The Central Bank has urged consumers to be cautious and to only deal with authorised lenders. They have also advised individuals to check the Central Bank’s Register of Authorised Moneylenders before entering into any financial agreements.

The warning comes after a number of individuals have reported falling victim to this scam. Many have been left in a worse financial situation as a result of the fraudulent loans, with some losing substantial amounts of money. The Central Bank has said that it is working with other authorities to investigate these cases and bring those responsible to justice.

In a statement, the Central Bank said: “These fraudulent lenders are preying on vulnerable individuals who are in need of financial assistance. They offer loans at seemingly attractive interest rates, but then demand upfront fees before the funds are released. Once the fees are paid, the lenders disappear, leaving the borrower in a difficult situation.”

The Central Bank has advised consumers to be wary of any lenders who ask for upfront fees or who are not listed on the Register of Authorised Moneylenders. They have also encouraged individuals to report any suspicious activity to the Central Bank or to their local GardaΓ­.

In addition to the warning, the Central Bank has provided some tips for consumers to protect themselves from moneylending scams. These include:

– Research the lender: Before entering into any financial agreement, consumers should research the lender and check if they are authorised by the Central Bank. They should also look for reviews or feedback from other borrowers.

– Be cautious of high interest rates: If a loan offer seems too good to be true, it probably is. Consumers should be cautious of lenders who offer loans at exceptionally high interest rates.

– Avoid upfront fees: Legitimate lenders generally do not ask for upfront fees. Consumers should be wary of any lender who demands payment before the loan is approved or disbursed.

– Protect personal information: Consumers should never provide their personal or financial information to unknown or unauthorised lenders. This information can be used for identity theft or other fraudulent activities.

The Central Bank’s warning serves as a reminder for consumers to be vigilant and to exercise caution when dealing with lenders. It is important to take the time to research and verify the legitimacy of any financial institution before entering into any agreements. By doing so, individuals can protect themselves from falling victim to scams and avoid potential financial hardship.

In conclusion, the Central Bank’s warning about the moneylending scam highlights the need for consumers to be cautious and to only deal with authorised lenders. By following the tips provided and reporting any suspicious activity, individuals can protect themselves and help to prevent others from falling victim to these fraudulent schemes.

Thomas Lyons
Thomas Lyons
Thomas, the founder and chief editor at Top Rated, harbours a deep-seated passion for business, news, and product reviews. His thirst for knowledge and experience has led him on a journey across the length and breadth of the country, enabling him to garner a wealth of insight. At TopRated.ie, his sole aim is to deliver meticulously researched news and provide impartial reviews of fact checked Irish companies, thus helping readers make well-informed decisions.

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