Consumers have been warned that scammers who pose as licensed companies are offering fake credit online to extort money from victims. A total of 28 such fraudulent lenders have been identified in Belgium in the last few months, the Financial Services and Markets Authority (FSMA) announced on Monday.
"Indeed, the current economic situation is leading consumers to look for an extra budget in the form of credit and thus come into contact with these dubious players," the FSMA stated
However, people are being advised to be aware of unlicensed lenders who offer loans online on very favourable terms with low-interest rates. Scammers often claim that they will not check whether the consumer has taken out and defaulted on previous loans in the past.
Using the names or logos of well-known credit institutions, scammers pose as licensed lenders or registered credit intermediaries. However, consumers who want to take out these fake loans are asked to first pay a number of charges, including an insurance premium. In this case, the lender has to cover in case of a non-repayment of the loan, but also in the filing of fees and administrative costs. After which, the scammers often disappear.
Increase due to economic situation
"It is virtually impossible to recover the amounts paid," the FSMA said, adding that it therefore "strongly advises against taking up this type of credit offer."
Consumers come into contact with these scammers in various ways, either because they are contacted by them via e-mail or Facebook or WhatsApp, or because they find advertisements for their loans on the internet.
It has warned consumers to be especially suspicious when offered credit out of the blue via the internet or social media when extremely low-interest rates are offered, and if the lender asks for a sum of money to cover certain costs before granting the credit.
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The FSMA website also includes a search function which allows people to check whether the provider has the necessary licence or registration. Companies without a licence or registration are not allowed to offer credit loans. Consumers can also contact the FSMA if they come into contact with a suspicious company.
The 28 fraudulent lenders are identified as: Adelan Finances, Akoue, BNC Finance, Cerberus, CK Kredit, CLC Bank, Crédit Belge, Credit Express, Earing Group Ltd, Eerst Krediet, Europa Finanzierung, Fianc Emprunts 24, Fouranexwork, Infilrux Financial, KashSpeed, Kredit Line Ltd, Kymco Krediet Bank, Legal Finance global, Mixatelwort, My Financial Group, Opunilo Financial, Pro-Lening, Rabo Krediet, Roalix-Finance, Fast Loan, Quick Loan, Sokredinet and Volkrediet.
