WASHINGTON — Consumers should be wary of fraudulent solicitations for a loan program for a nonexistent Federal Reserve lending program, the Fed warned yesterday.
Under the phony scheme, individuals are told that that they can work through a broker to access a Federal Reserve program that extends sizable secured loans to consumers. Consumers are encouraged to deposit large sums of money into a bank account, under the guise of a security deposit, in order to receive the purported loan.
The Federal Reserve has no involvement in these solicitations and does not directly sponsor consumer lending programs.
The agency urges consumers to verify the legitimacy of potential service providers before entering into a business transaction. It advised them to do business only with reputable lenders and to shop around for the most favorable loan terms.
Consumers with questions about solicitations that they suspect may be fraudulent are encouraged to contact the Federal Reserve Board ConsumerHelp Center at http://www.federalreserveconsumerhelp.gov or by calling 1-888-851-1920.
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