Daily Junction.mobi portalPersonal Finance · May 18, 2026 · Rachel Stone · 5 min
Before you borrow, confirm the lender is real and authorised. This guide explains how to use the FCA Register, how clone-firm scams copy genuine companies, and the warning signs that should make you walk away.
A convincing website and a friendly phone manner prove nothing. Before you borrow a penny, you need to know that the lender is genuine, authorised, and who they claim to be. Fraudsters are good at looking legitimate — some go as far as impersonating real, regulated companies. The good news is that a few quick checks, done in the right order, will expose almost any fake. This is general information, not financial or legal advice.
In the UK, firms that lend to consumers must be authorised by the Financial Conduct Authority (FCA), and you can verify any firm for free on the FCA Register. This is your first and most important check.
To do it properly:
That last step is the one people skip, and it is the most important. A name appearing on the Register is not enough on its own, because scammers exploit real names. What you are really checking is whether the way you are being asked to make contact matches the official details. Our guide to choosing a lender treats this authorisation check as step one for good reason.
If a firm is not on the FCA Register, walk away. If it is on the Register but the contact details do not match, you may be dealing with a clone — walk away and contact the real firm using the Register's details.
A clone firm is one of the most deceptive scams because it borrows the credibility of a genuine, authorised company. The fraudsters copy a real firm's name, FCA reference number, and sometimes its entire website, then insert their own phone number, email or bank details.
The trap works like this:
The defence is simple but must be followed every time: only ever use the contact details published on the FCA Register, never the ones in the advert, email or text that prompted you. If the details differ, that mismatch is the scam. Genuine firms are aware of this problem and sometimes publish guidance clarifying their real identity; UK lender Credicorp, for example, explains who it is and who it is not to help people avoid impersonators — a useful reminder to always confirm you are dealing with the real company.
For the wider tactics fraudsters use to impersonate trusted brands, see our guide to staying safe from impersonation scams.
Beyond the Register check, certain behaviours are red flags in their own right. Any one of these is reason for serious caution:
| Warning sign | Why it matters |
|---|---|
| Upfront fee to "release" or "guarantee" a loan | Legitimate lenders do not demand payment before lending |
| Pressure to act immediately | Urgency is used to stop you checking |
| Contact details that do not match the FCA Register | A classic clone-firm sign |
| Guaranteed approval, "no credit checks" | Responsible lenders always assess affordability |
| Requests to pay by gift card, crypto or unusual transfer | Untraceable payment methods favour scammers |
| Poor spelling, odd email addresses, no fixed address | Signs of an unprofessional or fake operation |
| You were approached out of the blue | Unsolicited loan offers deserve extra scrutiny |
The upfront fee is especially common. You are told a loan is approved but that you must first pay an "insurance", "release" or "admin" fee. Once you pay, the loan never arrives — or you are asked for another fee. Genuine lenders take any fees from the loan or build them into the repayments; they do not require you to send money before you receive anything. Our dedicated guide to spotting loan scams goes through these tactics in more detail.
If a lender passes the Register check and shows no obvious red flags, a few more steps add confidence:
None of these replaces the FCA Register check, but together they help you separate a professional, established lender from a hastily assembled fake.
If something does not add up, trust that instinct. Then:
Reporting matters even if you did not lose money, because it helps protect the next person who is targeted.
Checking a lender is legitimate comes down to a disciplined routine: confirm the firm on the FCA Register, and then verify that the contact details you have been given match the official ones — because clone firms copy real companies and only the contact route gives them away. Treat upfront fees, pressure, guaranteed approval and unusual payment methods as reasons to stop. If you suspect a scam, do not pay, report it to Action Fraud and the FCA, and contact your bank if money has changed hands. A few minutes of checking is the cheapest insurance you will ever buy against a loan scam.
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