FRAUD ALERT: AUTO LEASE SCAM

30 December 2009 12:00 p.m. Eastern
Nicole Thompson

The Indiana Credit Union League is warning residents about a scam targeting individuals with auto leases coming due. Scammers posing as brokers contact the leasees by phone and say the scammers' company has taken over or purchased the lease from the original company. The scammers direct the leasees to a credit union to obtain a loan to pay off the lease and purchase the vehicle. The scammers provide an address where the pay-off check should be mailed.

Follow these tips to avoid a loss:

• Financial institutions do not generally sell their lease contracts.
• Obtain a Written Purchase Order/Buyout Order that can be verified. Scammers will not usually have the 10-day payoff information.
• Follow the closing note instructions from the original underwriter.
• Verify lease terms and conditions with their original lease holding company.
• Do not use contact information provided by someone on the phone. Refer to your original paperwork for phone numbers and addresses
• Use caution if you respond to an e-mail or phone call requesting you to confirm, update or provide account information.
• Use caution if anyone requests that you send or ship money, a check or wire transfers to a company different from the one you dealt with initially.