Consumer Payday Loans Mike (no last name) Complete Deception! Approved for $3,000 loan for emergency. Hidden fees total $600! Never got loan. Asked for refund. Was told we cant do that. New York Internet

This is from ABC NEWS

Payday loans are not a great deal to begin with – they are short-term, extremely high-interest loans – but what you got entangled with was an advance-fee loan scam. It’s where a supposed lender says they’ll get you the funds, but only if you provide some money first – for loan fees, insurance or something else.

Such a scheme is illegal on its face. Any time a supposed lender asks for money upfront, you should head for the hills.

The problem is these bogus lenders can be quite sophisticated. We’ve heard of consumers who were sucked in by fancy ads and websites, with legitimate-looking applications and people who pose as loan officers.

But if there’s money required upfront, it’s a scam.

Legitimate lenders do frequently add application, appraisal or credit report fees; however, they take them from the amount you’re borrowing after everything is approved. When someone asks for a chunk of money for fees before you’ve gotten your loan, it’s a huge red flag, according to the Federal Trade Commission.

Consumers who encounter an advance-fee scheme like this can report it to the Internet Crime Complaint Center and the Federal Trade Commission.