I was contacted by Michael Bailey from the "Millcroft Loan Center" telling me I'd been approved for a $5000 loan I'd applied for online. I was skeptical at first, but was faxed documents that clearly spelled out the terms of the loan.

Because my credit had "some problems, " I was told I needed to pay the first five months in advance. I was told that I needed to fax over all of the documents and that as soon as I had the cash to wire to my "lender, " I would have $5000 deposited into my bank account w/in 24 hours.

I did exactly as told by "Michael, " and was assured I would have the money in my account the next day. When it was not in my acct as promised, I called Michael Bailey to follow up. After he rejected my call 5 times, my call was finally answered.

He told me to give him an hour to "look into it for me" and that he would call me in an hour. An hour and a half later, I called HIM back. He said that my "lender" had taken out insurance on my loan for me and had already paid for it. I needed to send $1000 more before my loan could be released.

Let me first say that on the loan documents I completed, signed, and faxed back as instructed, I was given the option to purchase insurance on the loan. I CLEARLY DECLINED this option on the loan document.

Needless to say, I refused to send additional money to "Josef Sina" in Ajax, Ontario, Canada. I said I wanted to cancel my loan and wanted my money back. I was told that wasn't an option- "the lender" wouldn't allow that.

After asking repeatedly for my "lender's" phone number and name, and being denied this information by suddenly nasty Michael Bailey, I was told he had to take another call and to call him when I have the $1000. Then I was hung up on.

I looked up Millcroft Loan Center extensively before sending money, but I found NOTHING. I see a report was posted 8/25/10, so this must be a new scam.

Hopefully my report will save at least one person from losing their money when they need it most.