MFSA issues warning against 'dubious' company offering loan services

14th January 2020

It stressed that the company behind the advertisements is not registered in Malta, neither is it licensed by the MFSA to provide banking services or other financial services.

The Malta Financial Services Authority (MFSA) has warned of an entity operating under the name of KREDIT GROUP FINANCE promoting the provision of loan services via advertisements on various internet webpages.

It warned that KREDIT GROUP FINANCE is also targeting prospective clients via mass emails, written out in Maltese, which states:

“Għandek bżonn self biex tikklerja d-djun tiegħek, tħallas il-kontijiet tiegħek jew twaqqaf proġett … Il-kapaċità tas-self tagħna hija minn 5,000 € sa 50,000,000 € b'rata raġonevoli ta' 1.25% … Fi sħubija ma' sħab bankarji madwar l-Unjoni Ewropea, l-offerti ta' kreditu tagħna huma pprovduti permezz ta' trasferiment bankarju għas-sigurtà tat-tranżazzjoni lil kwalunkwe persuna“.

Translated to English, the email reads: Do you need a loan to clear your debts, pay your bills or start a project? We are able to provide loans from €5,000 to €50,000,000, with reasonable rates set at 1.25 per cent. Through partnerships with other banks across the EU, our offer of credit is provided through a secure bank transfer to any person.

The MFSA warned in a statement that while the contents of the email may vary, recipients are provided with the following details for ‘further business enquiries’:

E-mails address – lencrero@gmail.com; WhatsApp number - +3375531315
The financial regulator issued a statement alerting the public that “KREDIT GROUP FINANCE is NOT a Maltese registered Company NOR licensed or otherwise authorised by the MFSA to provide any banking services or other financial services which are required to be licensed or otherwise authorised under Maltese law”.

It remarked that from information available to the MFSA, it appears that “KREDIT GROUP FINANCE is likely to be a scheme of dubious nature with a high risk of loss of money”. The regulator cautioned against undertaking any business or transactions with the abovementioned entity.

The MFSA stressed that consumers of financial services should not enter into any financial services transaction unless they have ascertained that the entity with whom the transaction is being made is authorised to provide such services by the MFSA or another reputable financial services regulator.

“Investors should also be extra cautious when being approached with offers of financial services via unconventional channels such as telephone calls or social media”.

A list of entities licensed by the MFSA can be viewed on the official website of the MFSA at http://www.mfsa.com.mt/pages/licenceholders.aspx.

If you are a victim of a scam or think you might be dealing with an unauthorised entity or any other type of financial scam, first of all stop all transactions with the company and contact the MFSA at https://www.mfsa.mt/about-us/contact/ as soon as a suspicion arises.


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