DIVISION OF CREDIT UNIONS

CREDIT UNION ALERT

 

November 20, 2003

Consumer Alert

Public Warned About 'Fake Credit Unions'

The Department of Financial Institutions' Division of Credit Unions has become aware of fraudulent lending schemes by entities/persons representing themselves as credit unions in newspaper advertisements, and/or on Internet websites.  DCU is concerned consumers will lose money from loan scams or have their identity stolen.  Advertisements for fake credit unions have appeared in newspapers from Pennsylvania to Washington State.

Consumers are enticed to wire funds to fake credit unions after calling the toll free phone number in the advertisement.  The pitch is similar, offering “hassle-free loans” and offering to assist with credit related problems by offering auto loans, personal loans, debt consolidation loans, and home equity loans.  This is simply a ploy to have victims send money for a non-existent loan.  The victim is directed to make the advance payment via wire transfer through Western Union. The customer never receives the loan, any other services, or a refund of the money paid. The advertisements mimic those of legitimate federally insured credit unions.  The advertisements also include the National Credit Union Association (NCUA) and Credit Union National Association (CUNA) logos.  NCUA is the independent federal agency that insures deposits at Washington credit unions.  CUNA is the not-for-profit national trade association serving America's credit unions.

As part of the loan process, the victim receives what appears to be a valid loan application that requests personal and financial information.  This information may be the basis for further fraud, including identity theft.

DCU issued a cease and desist order against “Zurich Credit Union” to discontinue doing business in Washington State.  “Zurich Credit Union” is just one of the names used by unauthorized entities.  DCU cautions the public to seek information about any company making an offering through advertisements and before sending any money for loan processing or any other service.  Protect your credit and your identity.  If you have questions regarding this alert or any other suspected fraudulent activity, please contact one of the following agencies:

State of Washington  
Department of Financial Institutions  
Division of Credit Unions
Phone:  360-902-8701
Toll Free: 1-877-RING DFI (1-877-746-4334)
Email:  dcu@dfi.wa.gov

NCUA Fraud Hotline:   800-827-9650
Phone:  703-518-6550