For the Democrat-Herald

Oregonians should beware of a national scam in which potential loan applicants are required to pay an advance fee but never receive the loan, the Oregon Department of Consumer and Business Services warned Monday.

The department said people in Oregon, across the country and in Canada have received e-mails or phone calls from companies offering to lend money for business or personal use. Two businesses purporting to be in Oregon and offering the loans are Oregon Bankers Lending Network and Corporate Bankers of America.

State investigators with Division of Finance and Corporate Securities say the con artists either cold-call or e-mail prospective applicants and offer a variety of loans - including business and mortgages - and then, as part of the transaction, request an advance processing or setup fee that must be wired.

Once the fee is sent, the applicant does not hear from the loan company representative again. In reality, the company does not exist and the applicant has been scammed out of the fee. There are two individuals known to have been victimized, one in Connecticut and one in California.

"Given the current economic downturn, it is more important than ever to ask questions of and check out the credentials of anyone offering loans," said David Tatman, administrator of the division.

The division's toll-free number in Oregon is 1-866-814-9710; the Salem number is (503) 378-4140. In addition, the division's website features a searchable database that lists those entities or individuals authorized, licensed, or registered by the division to do lending business in Oregon. The address is www.dfcs.oregon

.gov/online.htm.

The Division of Finance and Corporate Securities, part of the Department of Consumer & Business Services, helps ensure that a wide range of financial products and services are available to Oregonians, regulates consumer and mortgage lending and helps protect consumers from financial fraud and abuse. For more information, visit www.dfcs.oregon.gov.

The Department of Consumer and Business Services is Oregon's largest business regulatory and consumer protection agency. For more information, visit www.dcbs

.oregon.gov.