Consumers warned of bogus personal loan firms

People are being reminded of the need to borrow money from reputable loan companies as scams are prevalent throughout the country.

The Citizens Advice Bureau said there has been a rise in unscrupulous firms offering fake personal loans to customers for a fee.

In many cases, they are advertised on the internet or people are approached through a cold call or text message.

Citizens Advice Director of Policy Teresa Perchard, said: "In the recession loans can be hard to get and people falling into debt or unable to get mainstream credit are being targeted with ads and direct contacts."

She added that some people have had their current accounts raided after applying for personal loans and were left paying unaffordable fees.

Findings from Sainsbury's recently showed that an increasing number of people are taking out personal loans to pay for their children's education.

Posted by Ruth Bradshaw