Morganton, NC asked in Consumer Law for North Carolina

Q: I was approved for a 5000 loan but I was asked to make 3 upfront payments. Is this a scam or a collateral loan

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1 Lawyer Answer
Lynn Ellen Coleman
Lynn Ellen Coleman
  • Licensed in North Carolina

A: It sounds like a scam. A typical loan requires NO "up front" payments. Do NOT send any money without receiving, reviewing and signing a complete promissory note or loan agreement that describes how much the payments are, the interest rate, and the total amount to be paid back. This is required by the Federal Truth In Lending act. Also, be wary of any company that is not licensed to do busines sin North Carolina or makes you agree to arbitrate disputes in another state or agree to be bound by the laws of another state, or is not a FDIC insured bank.

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