ASIC is today warning consumers about the activities of a person trading as Mike Morgan Loans and who is operating through the website www.mmloans.com.
The website appears to be based in South Africa.
The site falsely states that:
Mike Morgan Loans is a licensed credit provider, when it is not; and
that a licensed Australian company is trading as Mike Morgan Loans, when it is not.
Mike Morgan Loans is not the registered business name of any Australian company or Australian credit licence holder.
ASIC is also aware that unsolicited emails have been sent from Mike Morgan Loans to consumers offering loans ranging from $10,000 to $20 million with a low interest rate of 3%.
ASIC Commissioner Greg Tanzer said that consumers need to be cautious when approached with unsolicited offers of financial products.
'I would also urge consumers seeking loans or other credit products to avoid dealing with people or companies who are not licensed by ASIC. Australian credit licensees are subjected to stringent requirements under the national consumer credit legislation which are designed to protect consumers. This way you can be confident you are dealing with a legitimate credit service provider and avoid potentially significant financial losses.'
Consumers can check if a company is licensed by ASIC by searching the Australian credit licensees register on our website.
ASIC's MoneySmart website provides information for consumers about how to identity a loan scam. Consumers are advised to watch out for the following warning signs:
requests to transfer money upfront to an overseas-based account or to a person overseas or requests to pay taxes or fees before a loan can be provided;
repeated telephone calls or emails
offers of an interest rate substantially lower than what is available from legitimate lenders
offers of a free period before any repayments have to be made
the loan provider says that they don’t do any credit checks and they'll lend money to consumers with past financial problems.