Attorney General Philip McLaughlin today issued a warning to New Hampshire consumers who may be responding to newspaper advertisements offering mortgage financing and other special buyer programs to be aware that some of these offers are not legitimate, and that some consumers have lost thousands of dollars by sending money to an individual in order to "secure" a loan.

While the advertisement specifically states there is no application fee for the same-day approval loan, when consumers call the number listed in the advertisement, they are told to wire funds to a particular individual to secure the loan. The consumers are told that they will receive the appropriate loan documentation through the mail. In all instances reported to the Consumer Protection Bureau, consumers have not received their loan documentation, and have not been able to contact the companies, and have lost their initial payments.

In order to avoid potential economic loss, Attorney General McLaughlin advises consumers who decide to apply for financing via classified advertisements, to refrain from sending any money to an individual as opposed to a company named and to get all information about the potential financing and the company in writing before finalizing the loan. Attorney General McLaughlin cautions consumers to remember that they never have to pay a large some of money in order to obtain a legitimate loan.

For further information about how to avoid becoming a victim of predatory lending practices, please contact the Consumer Protection Bureau at 33 Capitol Street, Concord NH 03301, or call (603) 271-3643.