We were looking for a personal loan, this one company said they could give a loan if we pay a deposit first because we are a "high risk".Is this legal?
I cannot say that it is illegal necessarily based on the facts provided but i will tell you that it sounds really fishy and I caution you to be extremely careful. A legitimate lender looks for loan security from your assets or income and not a cash deposit. What happens to this deposit if the loan never closes? What sort of forfeiture rules apply? Even if you don't forfeit the deposit what will you have to go through to get the money back? Sounds like a potential scam to me.
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