22
March , 2019
Friday

Email This Post Email This Post

The Better Business Bureau Issues Alert On Loan Scam

Posted by Admin On August - 8 - 2014

CHICAGO, IL – Despite an improving economy, thousands of individuals still find themselves cash strapped. Armed with that knowledge, scammers continue to rip-off consumers who can least afford it. The Better Business Bureau (BBB) has received reports from a steady number of individuals who were the targets of or have fallen victim to loan scams. Today, scammers are using the Internet, phone and mail to reach their victims.

Chicago resident Stephen Hildebrand applied for an online loan. From the one application, he received three responses that promised guaranteed loans of $5,000. To receive the cash from a company calling itself Eloan.com he paid an upfront fee of $550. He then paid $423.80 for a loan from GE Capital Bank. Mr. Hildebrand says, “I got a third call stating I could get a loan from $2,000 to $7,000, but I did not continue a full conversation with them.” He also stated, “All the calls came on the same day and that they used the same verbiage word for word.”

“Advance fee loan scams are not new and they flourish when times are tough, and people are struggling to get by,” said Steve J. Bernas president and CEO of the Better Business Bureau serving Chicago and Northern Illinois. “In most cases desperation is a factor for people grasping for a financial lifeline. It only worsens the situation when they fall victim to one of these scams.”

Using all means available scammers will sometimes pretend to represent an existing business. That is the case in one scheme where the scammer sent loan applications in the name of a payday lender located on Cicero Ave. in Chicago. There was no need to visit the office since the application could be completed online. All that was needed to be approved for the “instant” personal loan was the advance payment of $230.00 which would prove that the applicant could afford to make the payments on the $5,000 loan.

The application required that the individual applying for the loan purchase a GreenDot Moneypak card and have the advanced payment loaded onto the card, and provide the PIN number to the scammer. Once the payment was loaded, the individual was told to provide the card and pin number to the scammer.

Individuals who run these loan scams can be relentless. Andy Cordell of Rockford, IL says, “I received 15-20 calls claiming I’d been approved for a loan from American Financial Services that I never applied for.” Angry about the repeated calls to his home phone Mr. Cordell said “I did the same thing to them. I called and left 20-30 messages. No one ever picked-up until I called using my cell phone. That’s when I got the name of the business.”

Bernas noted, “Loan scams are big business. Reports state that in recent years, victims across the country have lost an estimated quarter million dollars to these scams.”

BBB advises cash strapped individuals to look for the red flags of a loan scam:

  • A lender isn’t interested in your credit history – A lender who uses terms such as “Bad Credit? No problem” or “Get money fast” and “No hassle loan guaranteed”
  • Advanced fees and those that aren’t disclosed clearly and prominently – Any upfront fee that the lender wants to collect before granting the loan is a cue to walk away.
  • A loan offered by phone – It is illegal for companies doing business by phone in the U.S. to promise a loan and ask you to pay for it before they deliver.
  • A lender who uses a copy-cat or wanna-be name – Scammers give their companies names that sound like well-known businesses and create websites that look professional; some may even produce forged paperwork.
  • The lender is not registered in your state – Lenders and loan brokers are required to register with the Illinois Department of Financial and Professional Regulation.
  • Lender who ask you to wire money or pay an individual – Don’t make a payment for a loan directly to an individual or wire money to another country.

For more information on finding businesses you can trust, visit bbb.org and follow us on Facebook and Twitter.

You can leave a response, or trackback from your own site.

Leave a Reply

You must be logged in to post a comment.

Recent Comments

Welcome to CopyLine Magazine! The first issue of CopyLine Magazine was published in November, 1990, by Editor & Publisher Juanita Bratcher. CopyLine’s main focus is on the political arena – to inform our readers and analyze many of the pressing issues of the day - controversial or otherwise. Our objectives are clear – to keep you abreast of political happenings and maneuvering in the political arena, by reporting and providing provocative commentaries on various issues. For more about CopyLine Magazine, CopyLine Blog, and CopyLine Television/Video, please visit juanitabratcher.com, copylinemagazine.com, and oneononetelevision.com. Bratcher has been a News/Reporter, Author, Publisher, and Journalist for 33 years. She is the author of six books, including “Harold: The Making of a Big City Mayor” (Harold Washington), Chicago’s first African-American mayor; and “Beyond the Boardroom: Empowering a New Generation of Leaders,” about John Herman Stroger, Jr., the first African-American elected President of the Cook County Board. Bratcher is also a Poet/Songwriter, with 17 records – produced by HillTop Records of Hollywood, California. Juanita Bratcher Publisher

Recent Posts