The Straw Purchase
Scam April 26th, 2011“Straw Purchase” transactions have increased in recent years. Incidences of this typically increase when interest rates go up, and fewer people qualify for loans as lenders tighten their belts. Even though we touched on this scam earlier under the section on co-signers, it bears repeating because this type of scam can happen before you know it has.
A straw purchase traditionally refers to handgun sales. When one person buys a handgun for a person who is ineligible to own one, it’s called a Straw Purchase, carrying stiff penalties. That’s how the Columbine High School student shooters got their guns.
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