Advance Fee Loan Scams
 
The District of Columbia Department of Insurance, Securities and Banking (DISB) Enforcement and Investigation Bureau is warning all District residents to be careful of lenders or loan brokers who illegally charge a fee for the promise of a loan. Collecting a fee upfront to secure a loan is an illegal practice.

 

Typically, advance fee loan scams target consumers with bad credit or an immediate need for money. Initial contact may be through an Internet website, e-mail, newspaper advertisement, or telephone solicitation, and a toll-free number is often provided for additional information. Once an application is submitted, consumers are typically lured into paying a fee, to "guarantee" the loan - ranging from $25 to several thousand dollars, depending on the loan amount requested. In many instances, after consumers wire or mail a fee to the broker, lender, or insurance company,they never receive the promised loan.

 

The following companies have advertised business addresses in the District of Columbia, but they are not licensed or registered in any way in the District of Columbia and do not do business at these addresses. These companies have solicited advance fees to "guarantee" loans and have instructed consumers to wire funds to Canada and Atlanta, GA.

 

MA Nationwide Lending
325 Fifth Street, NW
Washington, DC 20001

Paragon Group, Inc.
1775 Massachusetts Avenue, NW
Washington, DC 20036

Trafalger Group, Inc.
1934 K Street, NW
Washington, DC 20006