Watch out for advance-fee loan scams

CHARLOTTE, N.C. — Thulder Carelock said his car has electrical problems.

"It won't pass inspection like that, know what I mean?" Carelock said.

He went online and applied for a loan.

"I was only applying for $1,000," he said.

A so-called lender sent him a text saying he was approved, but there was a catch.

The man wanted him to pay a $100 insurance fee before he could have the loan.

There was another red flag.

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The man who said he was a lender wanted Carelock to pay using Google Play cards.

Carelock went along with it, but the scammer wanted another $100 for a delivery fee.

Carelock refused to pay the extra amount.

"If I had money like that, I wouldn't be trying to borrow money," Carelock said.

Carelock emailed Action 9's Jason Stoogenke, who called the number the man Carelock said is involved.

Stoogenke: “You're scamming people."

Man: “I am not."

The man hung up after Stoogenke asked, “What legitimate loan company asks customers to pay them first using gift cards?"

"It was a scam. It was a scam," Carelock said. "Don't fall for it."

The method the man used is called advance-fee loan scams.

Be suspicious if someone wants you to pay money up front. You shouldn't have to pay money to get money.

You shouldn't have to pay money using an unusual payment method, such as Google Play cards.

Other things to be cautious of include bad grammar and someone telling you that you're approved for a loan in a way that seems too simple, such as not having to conduct a credit check.

Cox Media Group