Loan scammers target local people desperate for money

Loan scammers target local people desperate for money

TIGARD, Ore. – Robert Fair got a call from a company called Consumer Payday Loans out of Florida promising him a loan for $2,000. The call came at a time when he needed money desperately.

Fair says he's in constant pain and needs to speak through a special valve implanted in his throat after cancer surgery. It's one of his many health problems.

"This tooth that's missing fell out about a month ago," he says pointing to it.

He's been looking for a loan for dental work and got a call saying he was approved.

"I said, 'hallelujah!' Finally, some good news."

He just had to send money to the loan company for fees: First, $272, then $450.

"It didn't even cross my mind at the time. I was just so happy that someone said yes," Fair says.

Then they told him the loan was stuck because he had bad credit, and he needed to pay more. Suddenly, he understood.

"You guys are just stealing my money," Fair says. "I said, 'I want my money back.'"

KATU News called the company. Its response: "What we are doing, it's a loan company. We are providing the loan to the people."

At first the company representatives tried to claim they sent Fair his loan, but they didn't provide any evidence they had done so.

"You don't know anything about my company, about me, about my power. ... I'm going to hang up the call. You have a good day ..." the representative said to a KATU News reporter.

Your best defense against these kinds of calls is to hang up as well. You don't need to pay money in advance for a loan. You do need to check out the business first.