'Federal Reserve' loan offer is fake

By Dan Thanh Dang

November 16, 2008

The Federal Reserve Board is warning consumers to be wary of questionable solicitations promising access to personal loans through what turns out to be a nonexistent Federal Reserve lending program.

Under the scheme, individuals are told they can work through a broker to access a Federal Reserve program that extends sizable secured loans to consumers.

Targeted consumers are encouraged to deposit large sums of money into a bank account, under the guise of a security deposit, to get the loan.

The Federal Reserve has no involvement in these solicitations and does not directly sponsor consumer lending programs. Before doing business with anyone, consumers are urged to verify the legitimacy of potential service providers, shop around for the most favorable loan terms and enter into transactions only with reputable lenders.

Consumers with questions about solicitations that they suspect are fraudulent are encouraged to contact the Federal Reserve Board Consumer Help Center at http://www.federalreserveconsumerhelp.gov or call 888-851-1920.