Car finance scams reported in USA

Fri, 27 Oct 2006



An online lender of car finance loans disappeared off the internet after customers paid up. The news ushers in a new concern for consumers, financial services companies whose only purpose is to take you for a ride.

Several browsers on the Internet applied for an auto loan from a company called Allstate Auto Lending . Following a sponsored links advertising section from Yahoo search results, several of the customers chose Allstate as their car finance lender . Following online instructions, the borrowers wired deposits for the loan through to the CEO of Allstate, one ‘Bill Wallace.’

Allstate lured customers by offering very low interest rates, without rigorous credit checks. Victims of the scam, who could number above ten, were duped by a false application form asking for 5 per cent of the loan amount in escrow as an insurance policy should they default on their loan. The company then said that they would directly pay the dealership the remaining amount. Customers were tricked into handing over sensitive personal information that could be used for identity theft.

Being aware, using spyware and spam alerts, scrutinising logos and phony awards, fake official paperwork, phishing and identity theft ruses and the most modern software can all help. Take time looking around, and don’t rush into car finance deals, no matter how tempting they look.
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