BOGUS lenders are using the internet and phone calls to prey on people desperate for cash this Christmas, warns West Yorkshire Trading Standards.

The watchdog body is warning the public of a serious rise in the number of people being defrauded as they try to borrow money from gangs who offer to provide loans without any credit checks or assessments of affordability.

Various trading names are used and are often clones of legitimate, authorised lenders. A typical scam involves payment demanded upfront to arrange a loan, usually around £100 - £200 depending on the amount of the loan.

The fraudsters' demand for payment is made in the form of electronic money or international money transfers like Ukash or Western Union, knowing that these methods cannot be tracedor reversed.

Some would-be borrowers have even been asked to meet at a specified location to handover cash to persons they don’t know.

Occasionally payment is made by direct bank transfer. Fake documentation has even been issued purporting to be authorised by the regulator the Financial Conduct Authority to which the first loan instalment will be made.

Councillor Val Slater, Chair of the West Yorkshire Trading Standards Committee, said: “Never send money off or give your debit/credit card details to persons you don’t know, or persons you haven’t checked out first. Be wary of requests to wire money to another country or use overseas payment methods If you are in difficulty with debt contact the National Debtline on 0808 808 4000 or go on-line at www.nationaldebtline.co.uk.Report scams by contacting the Citizens Advice Consumer Helpline on 08454 04 05 06 or on-line at www.citizensadvice.org.uk.