RedSkyLoans - Advance Fee Scam

Alert Number: CA057670_8/24

The Washington State Department of Financial Institutions (DFI) has received a complaint from a Washington consumer against RedSkyLoans. The consumer reported that RedSkyLoans contacted them about qualifying for a loan to improve the consumer's credit. When the consumer accepted RedSkyLoans' offer, RedSkyLoan deposited checks into the consumer's bank account, which were later returned because the account was closed. The consumer reported that they paid the amount of the deposited checks to a Cash App account before realizing the deposited checks were returned. The Department was unable to verify the facts reported by the consumer.

RedSkyLoans has been associated with the following contact information:

Website: www.redskyloans.com

Address:
8 The Green Dover, DE 19901

Email: [email protected]

Phone: 912*483*9904

RedSkyLoans is not licensed by the DFI and is not registered to conduct business in Washington State by the Department of Licensing, the Department of Revenue, or the Secretary of State.

It appears that RedSkyLoans may be engaged in an "Advance Fee Scam" and is requiring payment of an upfront or advance fee in order for the consumer to be able to obtain a loan modification or forgiveness. Those offering such services may not collect a fee prior to full and complete performance of the services the person has agreed to perform for the consumer.

Important Information for Washington Consumers

• DFI warns Washington consumers that when considering doing business with a financial service provider the consumer can:
• Make sure that the entity is licensed. Consumers can use the "Verify a License" feature on DFI's website at www.dfi.wa.gov to check whether a payday or consumer loan company is licensed to conduct business in the state of Washington.
• Never provide any personal information, such as social security number or bank account number or access if the company is not licensed or authorized to conduct business.
• Cash App is licensed by DFI and does not appear to be involved with RedSkyLoans.

Important Information About Unlicensed Lenders

• Washington residents only: If you suspect unlicensed activity by a payday lender or consumer loan company, please contact the Department at 1-877-RING-DFI (746-4334), or online at www.dfi.wa.gov. Even if the activity involves a loan you obtained over the internet, a license is generally still required. If a collection agency is attempting to collect a debt from you, you can check whether the company is licensed by the State of Washington Department of Licensing.

Important Information for All Consumers

• If you received a loan from a lender and someone else is now attempting to collect the loan, collection activity may be subject to the federal Fair Debt Collection Practices Act (FDCPA). If you are contacted by a third party claiming you owe a debt, you can request a "written validation notice," which must provide the amount of the debt, the name of the creditor you owe, and your rights under the FDCPA. If you have questions regarding federal debt collection laws you can contact the Federal Trade Commission (FTC) at 1-877-FTC-HELP or online at www.ftc.gov.
• If you feel you have been the victim of a scam you can contact the FTC at 1-877-FTC-HELP (382-4357) or online at www.ftc.gov; or the Consumer Financial Protection Bureau (CFPB) at 1-855-411-CFPB (2372) or online at www.consumerfinance.gov.
• If the scammers already have your bank account information, social security number, or other personal information, you may be a victim of identity theft. You can contact your bank and the three major credit bureaus to take appropriate precautions. The FTC has information for victims of identity theft online at www.ftc.gov.
• If you feel you have been the victim of a scam involving the internet you can contact the Internet Crime Complaint Center online at www.ic3.gov.
• If you feel you have been the victim of a financial scam and are concerned about your personal financial information, you can contact your banking institution and the three major credit bureaus. Procedures for contacting the credit bureaus are available on the FTC's website at www.ftc.gov.
• If you live in another state, find the regulator in your home state.

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