Advance Fee Loans

WASHINGTON, DC (WUSA) -- "I got a call from a bank the said they had a loan approved for me. I was very excited."

This Maryland woman, who we'll call "Stacey", now wishes she'd never taken that call.

"It kinda sounded too good to be true."

It was a loan from Metro Lending Group to help her dig out of $25,000 worth of credit card debt. Times were tough. Stacey was ripe for the picking.

"These are people who are a perfect target," says the Better Business Bureau's Edward Johnson.

He is talking about advance fee loans. Lenders offer to get you out of a financial trouble spot if you pay them hundreds, even thousands of dollars, up front. A practice that is against the law.

"You make six months worth of payments up front," says "Stacey".

The companies use addresses across the country, even here in D.C. But they're really located in countries like Germany and Canada. That's where "Stacey" wired thousands of dollars in advance fees for her loan.

She says, "This should've been a red flag."

Especially, since "Stacey" is a finance manager who processes loans.

Ed Johnson says, "Consumers are falling prey to this kind of scam in record numbers."

The BBB says the lenders have legitimate sounding names and addresses that give them some cache. Here's what happened when we tried to track down some of them.

There was no Riley's Lending Tree listed here on H Street, N.W.

Eagle Limited Financial at 900 Pennsylvania Avenue Southeast? Nope, that was the Animal Welfare Institute. And, how about Image Financial Cooperation at 724 9th Street, Northwest.

They don't serve up loans there, but you could get something good to eat on the menu at the steak house.

Time and time again, our search for these lenders turned up nothing. And that's what "Stacey" is left with.

She says, "At that moment, I knew I'm in big trouble."

There was always a problem, and each time she had to wire more money to Canada. Her final tally, $5,800.

"There's no way of getting that money back," says Ed Johnson.

"Stacey" says, "I don't know how they sleep at night."

And just like that the company is gone.

Metro Lending Group is not Metro Lending Services which is a legitimate loan company.

And, Riley's Lending Tree is not Lending Tree, another reputable company.

There are some ways to keep this from happening to you.

Understand that it is against the law for a company to charge a fee in advance of a loan.

Deal only with known companies.

Do your research and check out the company.

If you think you've been taken, file a complaint with the BBB.