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Friday, September 27, 2013

Asked To Make A Down Payment For A Loan Using A Prepaid Debit Card? Beware

If you receive a loan offer but are asked first to put money on a prepaid debit card for a down payment, your caution flags should be flying at attention – be careful.

DFI recently issued a consumer alert regarding Cash Advance USA, an unlicensed online lender, who asked a Washington resident to put $250 on a prepaid debit card and then give them the debit card number.

Unfortunately, the consumer did so. Another individual claiming to work for the company then contacted the consumer and requested another $200. The consumer refused.

Ultimately $250 was withdrawn from the prepaid card and no loan was ever obtained.

This is simply a new variation of the old advance-fee loan scam.

Beware of anyone asking you to load money on a prepaid debit card for a loan.

If you are contacted regarding a loan, or are seeking a loan, first make sure they are licensed to do business in Washington by verifying their license with DFI at or calling 1-877 RING DFI (746-4334).