Calls offering a loan: how to tell if the offer is real

According to the FTC, a real lender does not promise a loan before the person applies. The FTC describes a demand to pay money in advance as a sign of a scam. The New York Attorney General advises consumers not to give card numbers, bank account numbers or Social Security numbers to a company they do not know. The FTC advises checking a lender independently, through a phone number or website already known.

The main points come from the Federal Trade Commission (FTC) and apply anywhere in the US. The phone numbers are for New York State. Many of these words are said in English, so the text gives them, and a short list of key terms is at the end.

In this guide:

Why the calls come every day
Five signs the FTC names
What the FTC says about these calls
“Preapproved” letters and offers
A text or email with a link
A check with a request to “pay back” part of it
Where a lender’s license is checked
After giving information or paying
Key terms

Why the calls come every day

A call with a recorded message instead of a live person is a robocall, the FTC says. The FTC says a robocall that tries to sell something is illegal unless the company has the person’s written permission.

The FTC says loan scammers often buy lists of people who have searched for loans online. A number on such a list does not mean its owner did anything wrong.

Five signs the FTC names

According to the FTC and the New York Attorney General, each item below is a sign of a scam.

A loan or “guaranteed approval” promised before applying. According to the FTC, a real lender does not promise or guarantee a loan or credit before the person applies.
“You are approved,” but the money comes after a payment. The FTC says scammers often call this fee “insurance,” “processing” or “paperwork.” The FTC and the New York Attorney General say it is illegal to promise a loan by phone and ask for payment for it in advance.
Pressure to decide right now. “You have to decide right now” is pressure. The FTC advises consumers to resist pressure and to talk to someone they trust before deciding.
Payment only by cryptocurrency, wire transfer (Western Union, MoneyGram), a payment app or gift cards. The FTC advises consumers never to pay someone who insists on payment only in these ways.
A request on the call for an SSN, a card number or a bank account number. The New York Attorney General advises consumers not to give these details to a company they do not know.

A call with none of these five signs is still not proof that the offer is real. A call alone cannot show that. The official ways to check a lender are below: where a lender’s license is checked.

What the FTC says about these calls

Pressing a button. The FTC says pressing a button, even when the recorded voice says “press 1 to speak to an operator” or “to be removed from the list,” will probably lead to more robocalls. The FTC advises hanging up on such calls.
The number on the screen. The FTC says scammers can fake the name and number that show up on the screen (caller ID).
Blocking numbers. According to the FTC, call-blocking and call-labeling services can help a person get fewer robocalls.
The Do Not Call list. The FTC says the Do Not Call Registry won’t stop scammers from making illegal calls.
Reporting. The FTC takes reports of illegal robocalls at DoNotCall.gov. A report includes the number that called, the number shown on the screen, and the date and time.

“Preapproved” letters and offers

An offer marked “preapproved” or “prescreened” may come by mail or email. These offers are a real practice in the US. As the FTC explains, a prescreened offer is an invitation to apply for credit or insurance, based on information in the person’s credit report: the company sets its own requirements and asks the credit bureaus (Equifax, Experian, TransUnion or Innovis) for a list of people who meet them. So such a letter means the person was on that list. It does not yet mean they will get money: the application is still a separate step.

The signs of a scam are the same for these offers:

a request for money before approval or before the loan is paid out;
an email or text with a link “to confirm information” (more below);
a check in the mail with a request to send part of it back (more below).

Stopping these letters. Opting out of offers sent from credit bureau lists is free:

optoutprescreen.com or by phone at 1-888-5-OPT-OUT (1-888-567-8688). The FTC advises consumers not to click links in unexpected texts, and to contact a company only through an address or number they already know.
The opt-out can last five years or be permanent. According to the FTC, a permanent opt-out needs a signed form.
The service asks for name, address, SSN and date of birth. The FTC says this information is used only to process the request.
This stops only the credit bureau lists. The FTC says opting out will not stop all offers that nobody asked for; offers can still come from other sources, and from companies the person has done business with. The full opt-out can take up to several weeks.

A text or email with a link

Signs listed on the FTC’s pages: a generic greeting; a problem with an account or a payment that needs quick action; a request to confirm personal or financial information; or a link to pay. The FTC says legitimate companies won’t email or text a link to update payment information.

The FTC advises consumers not to click such links and not to reply to the message.
The FTC also advises consumers not to send a password, an account number or an SSN to the sender of such a message.
According to the FTC, when the person has no account with the company, the message is likely a scam, and the FTC advises deleting it and reporting it. When the person has an account, the FTC advises contacting the company through a number or website already known, not the one in the message.
Reporting. According to the FTC, the number 7726 (SPAM) takes spam texts, and reportphishing@apwg.org takes phishing emails. In both cases, ReportFraud.ftc.gov also takes reports.

A check with a request to “pay back” part of it

This is a common scheme: a stranger sends a check, often for more than the person is owed, and asks them to deposit it and send part of the money back. As the FTC explains, the money may show up in the account in a day or two, but it can take the bank weeks to find out that the check is fake. By then the person has already sent the money and has to pay the bank back. Money showing up in the account does not mean the check is good.

The FTC’s rule is simple: when a stranger sends a check and asks for money back, it is a scam.

Where a lender’s license is checked

License. According to the New York Attorney General, the New York State Department of Financial Services (DFS) answers whether a lender or broker is licensed: 1-800-342-3736.
The name online. The FTC advises searching the company’s name online with words like “review,” “complaint” or “scam.”
The Attorney General’s office. The FTC advises checking a lender’s registration with the state attorney general or banking regulator. The New York Attorney General’s phone number is 1-800-771-7755.
Free counseling. The FTC says nonprofit organizations in every state offer credit counseling that is often free or low cost. The New York Attorney General’s page names one such organization, the National Foundation for Consumer Credit: 1-800-388-2227.
Paying in advance. According to the FTC and the New York Attorney General, promising a loan by phone and asking for payment for it in advance is illegal.
Time. According to the FTC, honest businesses give people time to make a decision. Pressure to hurry is a bad sign.

After giving information or paying

According to the FTC, ReportFraud.ftc.gov takes reports of these cases. The FTC says this is especially urgent when the payment was made by cryptocurrency, wire transfer or gift card.
The FTC’s site IdentityTheft.gov lists the steps to take after someone gives out personal information (SSN, password), by type of information.
The New York Attorney General’s office: 1-800-771-7755. The FTC: 1-877-382-4357.

Key terms

Plain meanings, not legal definitions. The Georgian word is in brackets.

advance fee: money asked for before a loan is given; a sign of a scam (წინასწარი საფასური).
blocking: blocking a number so it cannot call again (დაბლოკვა).
caller ID: the number and name shown on the screen; it can be fake (ეკრანზე გამოსული ნომერი).
credit report: a document with a person’s credit history: debts and payments (კრედიტ რეპორტი).
cryptocurrency: digital money; scammers often ask for payment this way (კრიპტოვალუტა).
Do Not Call list: a list that cuts down sales calls from companies (Do Not Call სია).
fake check: a check that is not real (ყალბი ჩეკი).
gift card: a prepaid card bought as a gift (სასაჩუქრე ბარათი).
lender: a company that lends money (გამსესხებელი).
licensed: holding a license (ლიცენზირებული).
loan: borrowed money that is paid back (სესხი).
nonprofit credit counseling: free or low-cost advice on debt and credit from a nonprofit organization (არამომგებიანი საკრედიტო კონსულტაცია).
opt out: saying no, for example to receiving such letters (უარის თქმა).
phishing: a fake email or text that tries to get information or money (ფიშინგი).
preapproved, prescreened offer: a company’s offer sent from a credit bureau list; the application is still a separate step (წინასწარ შერჩეული შეთავაზება).
robocall: a call with a recorded voice (რობოკოლი).
scam: fraud (თაღლითობა).
spam: unwanted messages that nobody asked for (სპამი).
SSN (სოციალური დაზღვევის ნომერი), wire transfer (ფულადი გზავნილი): more in the glossary: money and banks (in Georgian).

All words on one page: glossary (in Georgian).

Official links

For family and friends

These calls often reach people who are new to the country, so this page may help family and friends too. Signs of rental scams: renting an apartment in New York. We take information about calls and messages not listed here on our contact page.

This is general information and not legal or financial advice. Rules change. The current rules are on the official pages.