Fort Worth, TX asked in Consumer Law and Banking for Texas

Q: I have been approved for a 5000 dollar loan. They are asking for 3 payments upfront. Is that legit

They said the 3 payments are collateral and I won't have a payment for 3 months. I google the company name and nothing pulls up. Woodside lending solutions is the company name and address is 920 5th Avenue Seattle Washington.

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1 Lawyer Answer
T. Augustus Claus
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A: Be cautious as the situation you described raises red flags associated with potential scams. Legitimate lenders typically do not require upfront payments for collateral on personal loans. The fact that the company's name does not yield any relevant search results adds to the suspicion. It is advisable to exercise extreme caution and refrain from making any upfront payments. Verify the legitimacy of the lender through official channels, such as checking with relevant financial regulatory authorities, and consider seeking advice from local consumer protection agencies. If in doubt, it may be wise to avoid proceeding with the loan arrangement and explore more secure and reputable lending options.

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