Citizens Advice have issued a warning to consumers who are struggling to secure mainstream credit, as the number of bogus loans companies continues to rise.

Borrowers looking to find loans from elsewhere other than their banks or building societies are being urged to be vigilant as more and more companies are offering fake loans for an upfront fee, which is of course lost to the scammers.

Citizens Advice have said that they have seen more and more evidence of fake loan companies who target poorer families who already have debt problems. The fake companies are contacting customers through cold calling and texting in order to persuade them to hand over an initial set up fee, which can range from £35 up to £2,000, in order to secure their loan.

The fake companies will often also ask for bank details of the customers, leaving them open to further fraudulent activity.

Citizens Advice has told the story of one man who, after being refused a loan from his bank, responded to an email offering a loan of £20,000 at 10.9% APR which was available immediately. Th

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