‘I felt so foolish’: Christmas shoppers warned of rising loan fee scams as victim tells of ordeal

Published

2 years ago

December 14, 2022

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With a Christmas blighted by the cost of living crisis, there are fears more people could lose money to fraudsters offering non-existent loans.

The Financial Conduct Authority said it receives an annual increase in reports of loan fee fraud over the festive period.

Loan fee fraud happens when someone pays a fee for a loan they never receive – and the FCA is concerned that rising financial stress could place more people at risk of scammers’ tactics this year.

Emma Francis (not her real name) fell victim after escaping an abusive relationship where her ex-partner controlled all their money.

The single mother-of-three found herself facing a Christmas with no money and didn’t want to let her children down.

After searching for payday loans, she found a website offering “guaranteed” loans and paid, what she thought was, a £49 admin fee for a £500 loan.

“After paying, I rang them and they told me to go to a bank for a loan,” she told Sky News.

She then looked at the small print of the website which admitted the firm was a “broker, not a lender”.

“The advice they offered me was just that one line. Go to the bank. I knew then I wasn’t getting my money back,” she said.

“I was very vulnerable and looking back I was quite naive about it.

“It was a lot of money and I felt so foolish.”

Victims lose hundreds of pounds on average

An often-used tactic by loan fee fraudsters is to pressurise people who are seeking quick access to cash – but victims stand to lose £260 on average.

The regulator said such scams have already increased in frequency in the past year, with the number of cases reported rising by around a fifth (21%) between November 2021 and October 2022 compared with the same period a year earlier.

Nearly two-thirds (64%) of consumers are unaware of what loan fee fraud is.

The FCA is asking people to check its register if they are asked to provide an upfront payment for a loan.

Mark Steward, executive director of enforcement and market oversight at the FCA, said: “This Christmas period is going to be tough for many consumers, and those who have been hardest hit by the rising cost of living will understandably be anxious about meeting the additional expenses that Christmas brings.

“Some consumers may be tempted to take out loans to meet these extra costs. Unfortunately, this is where loan fee fraud scammers and illegal lenders see an opportunity.

“At a time of heightened stress and pressure, scammers and illegal lenders will rush consumers into bad decision-making.”

Ms Francis’s advice was to “talk to your children”.

“I know it seems silly,” she said, “but children are a lot more understanding than we give them credit for.

“I know my children would much rather watch a Christmas movie with me than open a big box of presents.”

She also said she doesn’t let Santa take all the credit.

“I tell my children one gift is from Santa and the rest are from mummy’s hard work,” she added.

“Because otherwise how do you explain that he brought your friend an Xbox and not you?”

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Most commonly used tactics of loan fee fraud

• Having made several loan applications online, you are then contacted out of the blue by text, email or phone and offered a loan
• Being asked to make an upfront payment into a bank account, or transfer money via an unusual method
• Scammers may claim that the fee is refundable and will be used as a deposit, administrative fee, insurance, or because of bad credit history
• You may be put under pressure to pay the fee quickly
• Once the first payment has been made, the scammer might contact you again to ask for more payments before they can give you the loan
• Even though you make the payments, you never receive the loan

UK

‘Major incident’ declared in Northern Ireland as wildfire breaks out amid higher-than-normal temperatures

Published

3 hours ago

April 6, 2025

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'Major incident' declared in Northern Ireland as wildfire breaks out amid higher-than-normal temperatures

A major incident has been declared in Northern Ireland after a wildfire broke out, the latest in a series of blazes seen across the UK over the past week amid soaring temperatures.

More than 100 firefighters and 14 fire appliances were at the scene of the “significant” wildfire on Sandbank Road, Hilltown, Northern Ireland Fire and Rescue Service said.

The fire had a front of approximately two miles “including a large area of forestry close to property”, the service said.

“Local residents are requested to avoid the area, a number of roads have been closed, to help support firefighting operations,” the fire service added.

“We ask that all members of the public remain particularly vigilant to the risk of fire at this time. We can reassure members of the public that normal service delivery is being maintained.”

Various fires erupted across England this week amid uncharacteristically warm and dry conditions for the time of year.

On Saturday, helicopters were deployed to tackle Scotland’s fourth wildfire this week, with police saying a blaze “which started in the Newton Stewart area has spread northwards and is expected to reach the Loch Doon area of East Ayrshire around 12am on Sunday”.

Police Scotland added: “As a precautionary measure members of the public are asked to avoid the Loch Doon area and anyone who may be camping in the area is advised to leave.”

Elsewhere in England, Devon and Cornwall Police said they were assisting the fire service with temporary road closures on the A30 in the Bolventor area as they tackle “a number of fires” on moorland.

In Dorset, Moors Valley Country Park was forced to close after multiple wildfires broke out there on Wednesday.

Separate incidents were then reported at Upton Heath in Poole on Wednesday, and nearby Canford Heath in the early hours of Thursday.

Friday was officially the warmest day of the year so far – with temperatures in the south of England reaching 23C (73.4F) – the highest since 21 September last year, according to the Met Office.

The weather conditions triggered a “severe” wildfire rating for parts of the UK on Tuesday.

UK

Labour MP Dan Norris arrested on suspicion of rape and child sex offences

Published

12 hours ago

April 5, 2025

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Labour MP Dan Norris arrested on suspicion of rape and child sex offences

Labour MP Dan Norris has been arrested on suspicion of rape and child sex offences.

A Labour Party spokesperson said: “Dan Norris MP was immediately suspended by the Labour Party upon being informed of his arrest.

“We cannot comment further while the police investigation is ongoing.”

Police said a man in his 60s had been arrested on Friday on suspicion of sexual offences against a girl, rape, child abduction and misconduct in a public office.

Sky News has contacted Mr Norris for comment.

Mr Norris, 65, defeated Jacob Rees-Mogg to win the new seat of North East Somerset and Hanham in last year’s general election.

He has also lost the party whip in the House of Commons and has stepped down from his role as chair of the League Against Cruel Sports.

Avon and Somerset Police said in a statement: “In December 2024, we received a referral from another police force relating to alleged non-recent child sex offences having been committed against a girl.

“Most of the offences are alleged to have occurred in the 2000s, but we’re also investigating an alleged offence of rape from the 2020s.

“An investigation, led by officers within Operation Bluestone, our dedicated rape and serious sexual assault investigation team, remains ongoing and at an early stage.

“The victim is being supported and given access to any specialist help or support she needs.

“A man, aged in his 60s, was arrested on Friday (April 4) on suspicion of sexual offences against a girl (under the Sexual Offences Act 1956), rape (under the Sexual Offences Act 2003), child abduction and misconduct in a public office. He’s been released on conditional bail for enquiries to continue.

“This is an active and sensitive investigation, so we’d respectfully ask people not to speculate on the circumstances so our enquiries can continue unhindered.”

Mr Norris first entered Parliament when Tony Blair came to power in 1997 and served as the Wansdyke MP until 2010.

He was an assistant whip under Mr Blair and served as a junior minister under Gordon Brown.

Mr Norris has also been West of England mayor since 2021 but is due to step down ahead of May’s local elections.

A spokesman for the League Against Cruel Sports, a UK-based animal welfare charity which campaigns to end sports such as fox hunting and game bird shooting, confirmed he had stepped down from his role.

“The charity cannot comment further while an investigation is ongoing,” a statement said.

UK

Jaguar Land Rover to ‘pause’ US shipments over Donald Trump tariffs

Published

19 hours ago

April 5, 2025

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Jaguar Land Rover to 'pause' US shipments over Donald Trump tariffs

Jaguar Land Rover (JLR) has said it will “pause” shipments to the US as the British car firm works to “address the new trading terms” of Donald Trump’s tariffs.

The US president has introduced a 25% levy on all foreign cars imported into the country, which came into force on Thursday.

JLR, one of the country’s biggest carmakers, exported about 38,000 cars to the US in the third quarter of 2024 – almost equal to the amount sold to the UK and the EU combined.

Follow live updates: Trump’s baseline 10% tariff kicks in

In a statement on Saturday, a spokesperson for the company behind the Jaguar, Land Rover and Range Rover brands said: “The USA is an important market for JLR’s luxury brands.

“As we work to address the new trading terms with our business partners, we are taking some short-term actions including a shipment pause in April, as we develop our mid- to longer-term plans.”

The company released a statement last week before Mr Trump announced a “baseline” 10% tariff on goods from around the world, which kicked in on Saturday morning, on what he called “liberation day”.

JLR reassured customers its business was “resilient” and “accustomed to changing market conditions”.

“Our priorities now are delivering for our clients around the world and addressing these new US trading terms,” the firm said.

Trading across the world has been hit by Mr Trump’s tariff announcement at the White House on Wednesday.

All but one stock on the FTSE 100 fell on Friday – with Rolls-Royce, banks and miners among those to suffer the sharpest losses.

Cars are the top product exported from the UK to the US, with exports worth £8.3bn in the year to the end of September 2024, according to data from the Office for National Statistics.

For UK carmakers, the US is the second largest export market behind the European Union.

Industry groups have previously warned the tariffs will force firms to rethink where they trade, while a report by thinktank the Institute for Public Policy Research said more than 25,000 car manufacturing jobs in the UK could be at risk.