SACRAMENTO, CA– Your Better Business Bureau serving Northeast California is warning consumers of a string of loan schemes targeting consumers nationwide.
Consumers report researching payday lenders on the Internet only to later receive telemarketing calls from alleged loan brokers offering easy terms with no credit check and fast funding.
Typically, their websites claim to offer real estate, personal, student, home repair, and many other types of loans. The catch is you have to make an advance deposit. Some Victims say that after they’ve paid deposits the “lender” requests more money for other reasons such as: insurance and wiring fees.
Consumers who bought into this scheme, each losing $150 to $1450 without receiving a loan, found themselves instead sending more and more money by cards or wire transfers.
These “lending” companies dupe consumers with polished websites, detailed contracts, and a notable address. The fact is, those we have researched, are not located where they say they are. Some have websites which are recently created, but claim to have been in business for years. The BBB is unable to find any business registration nor license to provide the types of loans they offer.
In cases where lenders are not licensed, California Law is clear, to offer a consumer a loan and charge an advance fee you have to be registered as a Credit Services Organization and post the required $100,000 bond. As of May 13, 2014, we verified that there are no advance fee lenders registered with the California Attorney General’s Office.
Victims of loan fraud frequently said:
“So what are you saying - I can't get the loan until I pay you another $250.00 dollars?”, exclaimed a Columbus, Ohio victim.
A victim from Ocilla, GA wrote,“I was told that my loan had been funded...The supervisor held it up because I needed insurance to guarantee my payments.”
Another from Los Banos, CA claimed,“...she gets back on the phone and says they need $350.00 more because my bank acct. was not a commercial acct but instead a personal acct.”
Before you take a loan, your Better Business Bureau recommends that:
Check with the BBB for businesses you can trust at necal.bbb.org.
Research a company before disclosing any personal information.
Do not submit private personal information online unless you are certain who you are giving it to and it is a secure website.
Verify that the company has the appropriate license. California lenders must be licensed with the Department of Business Oversight or Bureau of Real Estate or in cases with advance fee, they must be licensed with the Attorney General’s office.
Be suspicious of anyone requiring you to wire money to a private party outside the country.
Need Credit Help? Seek the assistance of a Credit counseling organization.