Any legitimate help they can offer can be pursued by consumers themselves at little or no cost. Advance-fee loan scams appeal to consumers who, based on their credit history, cannot get a loan. The scammers hold out the promise that, for an advance payment, even consumers with bad credit histories can get a loan. Some of the scammers make money through 900 numbers that charge consumers who call to find out about the loans. Other scammers simply charge consumers a fee for a loan that is never delivered.
Home equity scams target consumers who have good credit, but bad cash flow.
They promise credit based on the equity of a home. Some home equity scams make money based on serial refinancing, which churns the financing and constantly adds costs for consumers. Many consumers lose their homes to these schemes. Identity theft occurs when scammers appropriate stolen credit card numbers, social security numbers, mothers' maiden names or other personally identifying information to tap into the credit histories of consumers. Scammers then set up new credit accounts, charge purchases by tapping into existing accounts or drain bank accounts.