The Mountain States Better Business Bureau issued an international alert on Oct. 11 cautioning consumers about a surge in advance-fee loan scams. Bureaus from across the United States and Canada are receiving complaints from consumers who have applied for loans and paid money upfront, but never received the promised loans.

Consumers contacting the Better Business Bureau say they discovered the companies through local newspapers. The ads offer loans of thousands of dollars regardless of the person's credit history. Once the loan application is submitted, the consumer receives a letter indicating approval for a loan amount, usually in the range of $5,000 to $100,000.

However, before the money is released, the consumer is told to wire transfer up to $2,000 to cover "security and/or insurance" fees.

In all cases, the companies use U.S. addresses, but direct consumers to wire money to locations in Canada. Investigations determined that the U.S. addresses were either false or did not exist.

Legitimate lenders never "guarantee" or promise that you will get a loan before you apply, especially if you have bad credit, no credit or a bankruptcy.

Experience indicates that the following are signs of advance-fee loan fraud:

- Pressure to act immediately. Advance-fee loan schemers try to get you to send money or give out personal information (credit card numbers, bank account numbers, Social Security numbers) before you get any paperwork. Insist on receiving the necessary paperwork before deciding whether to apply for a loan.

- Won't provide location information. If the loan broker hesitates to tell you his or her physical location, beware; that's a common ploy to avoid law enforcement detection.

- Questionable connections to established financial institutions. Many of these schemes are merely telephone sales operations, so no connection will exist to an established financial institution. Ask which lenders the "loan broker" deals with, and ask for the physical address of the lender. Then contact the Better Business Bureau to request information on the lender.

Persons who feel they have been victimized by an advanced fee loan are encourage to contact the Mountain States Better Business Bureau for information about filing a complaint. Visit www.mountainstates.bbb.org, or phone 1-800-564-0371.