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A “Conversion loan”

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What is a Conversion Loan?

Conversion Loans is a fancy term that some questionable loan brokers have created as a well to sell a loan fraud scheme on the unknowing. Often this scam involves the alleged sale of a vehicle to obtain an auto loan at a lower interest rate and to take advantage of the lending policy on secured loans vs an unsecured loan. The fraudster often charges a fee and may submit false information for the borrower. It is not until after the loan has been disbursed does the Institution realize that there is no secure collateral.


Learn more about Barry Thompson and Robert Hyde’s webinar

Loan Fraud: Detection and Prevention

First published on 08/02/2020

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