This is a simple scam that is used on people with marginal credit and there is no reason to fall for the scam. The introduction scam is a needless expense that uses a middleman.
This scam cons people in one of two ways. The scammer runs a newspaper ad that guarantees a loan using investors and “other sources”. While the borrowers do in fact get a loan the scammer takes a fee for making the arrangement.
The setup is simple. You fill out some paperwork at an office, the scammer gives you a business card with the contact’s information, and sends you to a loan company such as HFC, American General, or Beneficial. The fee (let’s say it is $300) is regarded as a referral fee, and is paid out of the loan proceeds.
A settlement version of this scam is a simple modification. You and the collector talk about a settlement for less that the full payoff for a certain account. You don’t have the money to make the payoff. The collector sends you to his contact.
The introduction scam usually only works in larger cities. The reality of the matter is that you can probably get the loan without a middleman, and many people as upset or embarassed when they end up at Beneficial Finance or Household Finance after agreeing to pay somebody $300.
This type of con game lost some customers to payday lenders, but usually the con is run on those needing to borrow more than payday lenders will loan.