LOAN sharks are trying to dupe residents out of thousands of pounds as part of an advanced fees scam.

City of York Council trading standards officers are warning people to be on their guard against advertisements from companies offering fast loans regardless of credit history.

Consumers who respond to the adverts are told their loans have been agreed, but they need to pay a fee to cover the insurance of the loan before any cash is handed over.

Once the fee is paid, the consumer never hears from the company again and the loan is never received.

The Office Of Fair Trading claims some victims have lost up to £4,000 through the scam.

None of the adverts have appeared in the Evening Press or any other York and County Press publication.

Elizabeth Levett, City of York Council's trading standards manager, said: "At this time of year many people are looking for a personal loan to consolidate their debts. We would urge anyone seeking a loan to be wary of any business which requires an advance fee to be paid by money transfer to secure a loan.

"This scam is run by professional criminals who may use the personal details collected from victims to commit further fraud.

"We are working closely with the local newspapers and are seeking to ensure that all such adverts comply with the new legislation in respect of credit advertising."

Last year, a Canadian detective stepped up the battle against similar scams when he visited York and urged residents to help crack the masterminds behind them.

Sergeant Barry Elliot, from the Ontario Police, called for a multi-agency approach against the scams in Britain, and said a national police scheme centralising deceptive telemarketing scams had been launched in Canada, slashing the number of people who had been duped by 80 to 90 per cent.

He was trying to alert people such as York pensioner Dorothy Savage, who came close to handing over £729 to Canadian fraudsters in February, 2002, after being told she had won £5,000 for each month of the year.

Sgt Elliot said that only 0.7 per cent of British residents to have been targeted by the lottery scam had reported it.

Any victims of the advertising scam or anyone who spots a suspicious advert should phone trading standards on 01904 552519.

Updated: 10:18 Tuesday, February 01, 2005