The advice comes from Citizen’s Advice National who have launched the campaign as part of the Office of Fair Trading’s Scams (OFT) awareness month, which hopes to make people aware of fraudulent mass-marketed scams.

Loan companies often ask people to pay an upfront fee with the promise of a loan. Often this never materialises and if it does then it is usually less than the arranged amount and with a high rate of interest.

It is mostly those with existing credit problems that fall into the trap of such companies when they are offered a solution to their money problems.

Peter Tutton, social policy officer at Citizen’s Advice, said: “These conmen prey on vulnerable individuals and promise them a low-interest loan as an easy solution.

“Unfortunately in most cases there is no loan and this is just a front for scammers looking to make a quick buck.”

He went on to say that if no upfront fee is advertised and is then request to “be very wary”.

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