What is loan fee fraud?

Loan fee fraud is a scam that asks you to pay a fee for a loan you never receive. The FCA says criminals may call the payment a deposit, insurance or administration charge. 1

An upfront fee alone is not proof of fraud. Some genuine credit brokers charge fees. 1

By Secordit. Last checked: 7 November 2026.

Go to the steps · All glossary terms

How does it work?

  1. A supposed lender contacts you, sometimes after an online application. 1
  2. It asks for a payment before releasing the loan. 1
  3. You pay, but the promised loan never arrives. 1

What the FCA describes

The FCA describes criminals requesting vouchers or payments through crypto exchanges for supposed loan fees. These are examples in its consumer warning, not named cases. 1

What are the warning signs?

  • You are pressured to pay through bank transfer or vouchers. 1
  • A lender contacts you unexpectedly after an application elsewhere. 1
  • The contact details differ from those on the FCA Firm Checker. 1

What to do now

  1. Stop paying fees to a lender you cannot verify. 1
  2. Use the FCA’s published contact route to report suspected loan fee fraud. 1

UK reporting and support

  • If you paid a suspected scam, contact your bank using the number on your card. 23
  • Report fraud in England, Wales or Northern Ireland to Report Fraud. In Scotland, call Police Scotland on 101. 34
  • If someone is in danger, call 999. 4
  • Forward suspicious emails to [email protected]. Forward suspicious texts to 7726. 5

How can you protect yourself?

  • Check the firm and its lending permissions on the FCA Firm Checker. 1
  • Use contact details from the checker, not those supplied by the caller. 1

Frequently asked questions

Are all upfront loan fees scams?

No. The FCA says genuine authorised firms may charge upfront fees, with a notice setting out required information. 1

Can a scammer find me after an online application?

Yes. The FCA says criminals often target people who have applied for loans online. 1

Where should I check a lender?

Use the FCA Firm Checker and check permission for the service being offered. 1

Matching kit

After a Scam: What to Do First · £7 · Digital download.

A printable UK checklist for money, account and reporting steps. It is general information, not a recovery service.

General information, not legal, financial or personalised security advice. Secordit is not a police or bank reporting service.

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Sources

  1. FCA, Loan fee fraud. Accessed 7 November 2026 (Europe/London).
  2. Report Fraud, Ticket fraud. Accessed 7 November 2026 (Europe/London).
  3. Report Fraud, Police impersonation alert and reporting routes. Accessed 7 November 2026 (Europe/London).
  4. Police Scotland, How to report a crime. Accessed 7 November 2026 (Europe/London).
  5. GOV.UK, Avoid and report internet scams and phishing. Accessed 7 November 2026 (Europe/London).