An unexpected request for money to release a promised loan is a warning sign. Pause, verify the firm independently and read the written fee terms before paying or sharing further details.
What loan fee fraud can look like
A fraudster may promise a loan and then demand a payment described as an administration fee, deposit or insurance. Further requests can follow without the promised loan arriving. Pressure to pay quickly, unusual payment methods and unsolicited contact are reasons to stop and check.
A fee is not automatically proof of fraud: legitimate firms can charge fees in some circumstances. The question is who is charging, whether they have the right permissions and what the written agreement actually says.
Write down the unanswered questions
Before making any decision, keep the message and record the public name of the business, the amount requested and the reason given. Avoid forwarding identity documents or bank credentials while you investigate.
- Did I contact this firm, or did it contact me unexpectedly?
- Do its details match the official FCA record?
- What exactly does the payment purchase?
- Are the fee and refund conditions provided in writing?
- Am I being pressured to act before I can check?
If you have already paid
Contact your bank or payment provider promptly and follow the reporting directions on the FCA's loan fee fraud page. Keep the evidence; do not pay someone who promises to recover the money for another advance fee.
This page does not offer a loan or a recovery service. Official guidance is linked below so you can use the current reporting route.
Sources and scope
Prepared by Umofi. Sources checked on 17 September 2026. General information, not a personal recommendation. Check the current source and the firm’s written terms before acting.