MEMPHIS, Tenn. — An Arkansas man is sounding the alarm after he claims he was scammed out of hundreds of dollars in a loan scam. The Better Business Bureau calls it an advance loan scam.

As our WREG investigates, these scams are on the rise, and Millis Price doesn’t want anyone else to fall victim to them.

“Well, you learn from your mistakes,” Price said. “I will never let that happen to me again.”

Price said he lost $700 in an advance loan scam.

“It put me back on all my bills,” Price said. “Everything that was owed is going to be overdue now.”

Price went online looking for a loan. He wanted to make improvements to his house. So, he applied for several loans. But then he received an unsolicited call from a company. In order to get the money, they told him he had to buy hundreds of dollars in Ebay gift cards.

The price followed the instructions. We then sent him an agreement.

“I signed it and sent it back to him. He said he needed another $200 to release the money in my funds, ‘I told him well sir I don’t have much money, I already gave you $200. I said “you told me the money would be in my bank account 15 minutes after I did that,” Price said.

Needing money, he sent more information about the gift card.

“I was already so far there was no looking back,” Price said.

He realized it was a scam when the so-called lenders told him they wouldn’t return any of his money. Price said the men he was dealing with, who he said were in California, kept calling.

So we asked them ourselves what was going on.

But the man on the phone said he would only talk to Price.

“We want to get the message out that you’re scamming people,” Shay said.

Daniel Irwin of the Better Business Bureau of the Mid-South said people with bad credit or no credit at all are usually targeted in these cases.

“Legitimate lenders will never promise you a loan without knowing your credit history, and they will never demand payment upfront,” Irwin said.

Now they are becoming even more prevalent. In the past 3 months, he received 28 reports of similar scams with total losses of over $45,000.

This is compared to 35 to 40 reports for the whole of 2021.

“I hope someone sees this and it saves someone from getting scammed out of all their money,” Price said.

Price said he plans to file a police report.

The Mid-South BBB said any time you are contacted unsolicited by someone saying they are with a loan company, it should be a red flag and you should never prepay a loan.