Do real lenders ask for a fee before paying out a loan?

Some authorised brokers charge fees, but the FCA says they must send a notice setting out the charge first and you must agree to it. A demand for a transfer, vouchers or crypto to 'release' a loan matches loan fee fraud.

How do I check if a loan company is real?

Use the FCA Firm Checker, compare the contact details, and search the FCA Warning List.

How do I report a loan fee scam?

Call the FCA on 0800 111 6768 or use its contact form; if you paid, call your bank and report it to Report Fraud.

Loan offers that ask for a fee first: loan fee fraud

If a loan is 'approved' as soon as you pay a fee, the loan does not exist. The FCA calls this loan fee fraud and receives hundreds of reports a year.

Open the scam text checker

How loan fee fraud works

The FCA says fraudsters often target people who have applied for loans online, contact them out of the blue, and ask for an upfront payment described as a deposit, an administrative fee or insurance, often between £25 and £450. They push you to pay quickly by bank transfer, or ask for vouchers (Google Play, Amazon, eBay) or even payment through crypto exchanges. They may say the fee is refundable. The loan never arrives, and neither does the refund. Victims report an average loss of £255.

How a genuine fee works

Some authorised firms do charge an upfront fee. The FCA says they must first send you a notice with the firm's name as it appears on the Firm Checker, a statement that it is acting as a credit broker, whether you pay a charge and how much, and when and how you will pay; you must reply that you agree before you get the loan.

Check the firm

Look it up on the FCA Firm Checker and check it has permission for the service.
Check its contact details match the Firm Checker, and use those, not the ones in the text.
Search the FCA Warning List of unauthorised firms.
No contact details on the Firm Checker, or told they are out of date? Call the FCA on 0800 111 6768.

We do not arrange or recommend loans. If you are struggling with money, the FCA points to free debt guidance from MoneyHelper.

Sources

FCA, loan fee fraud: FCA, Loan fee fraud (updated 31 Mar 2026): "The fraudsters often ask for between £25 and £450. ... before giving you the loan, they'll ask for an upfront payment as a deposit, administrative fee or insurance." — https://www.fca.org.uk/consumers/loan-fee-fraud, read on 2026-09-29
FCA contact and Firm Checker: FCA, Loan fee fraud (updated 31 Mar 2026): "Use the FCA Firm Checker to make sure a financial firm is authorised by us ... Always use the contact details on the Firm Checker ... call us on 0800 111 6768." — https://www.fca.org.uk/consumers/loan-fee-fraud, read on 2026-09-29
Report Fraud: Action Fraud / City of London Police press release, 4 Dec 2025: "From Thursday 4 December 2025, anyone needing to report cyber crime or fraud will be directed to our new Report Fraud service. Report Fraud has replaced Action Fraud, for use in England, Wales and Northern Ireland. People affected by cyber crime or fraud in Scotland should continue to call Police Scotland using the 101 telephone number. ... reportfraud.police.uk or by calling 0300 123 2040." — https://www.wired-gov.net/wg/news.nsf/articles/Report+Fraud+service+goes+live+04122025143000; https://www.reportfraud.police.uk/, read on 2026-09-29

Frequently asked questions

Do real lenders ask for a fee before paying out a loan?: Some authorised brokers charge fees, but the FCA says they must send a notice setting out the charge first and you must agree to it. A demand for a transfer, vouchers or crypto to 'release' a loan matches loan fee fraud.
How do I check if a loan company is real?: Use the FCA Firm Checker, compare the contact details, and search the FCA Warning List.
How do I report a loan fee scam?: Call the FCA on 0800 111 6768 or use its contact form; if you paid, call your bank and report it to Report Fraud.

Why do I keep getting loan texts, and how do I stop them?
The UK rules on marketing texts, what the ICO fined a loan-text firm for in 2026, and the steps that make the texts stop: don't reply, 7726, ICO.
How to forward a scam text to 7726 (iPhone and Android)
Step by step for iPhone and Android, from the NCSC: what 7726 does with your report, what it costs, and what to do if 7726 does not work.
HMRC scam texts: tax refund messages and where to report them
What HMRC says it does and does not send by text, the tax refund pattern, and where to forward a fake: 60599 or phishing@hmrc.gov.uk.
Parcel delivery scam texts: missed delivery and redelivery fees
The missed-delivery texts Royal Mail has published as scams: a small fee, a shortened link, a lookalike site. How to check a parcel safely.

Last updated 2026-09-29. Independent information service. Number data from Ofcom shows the original range holder; numbers can be ported or spoofed. Not affiliated with Ofcom, the FCA, the ICO or any police service.