Consumers are urged to use extreme caution when applying for loans on the Internet -

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(A Message from the Better Business Bureau)

CHICAGO, IL – Consumers wanting to obtain loans of a few hundred dollars or less are urged by the Better Business Bureau (BBB) to be extremely cautious when applying for money from companies that offer loans over the Internet.Â Â

Illinois consumers are among those from 42 states that have sent in more than 280 complaints to BBBs across the United States. These complaints concern just one company, Utah-based, Zeal Funding Services, LLC also known as My Cash Guardian, Money Leaf and My Money Toolbox.

“There are some very disturbing commonalities in the complaints that our BBB and those from other states are receiving,” said Steve J. Bernas, president and CEO of the Better Business serving Chicago and Northern Illinois. “Consumers have complained about finding unauthorized withdrawals from their bank accounts and on their credit card statement by the company. When inquiries have been answered, the company states the withdrawals are for previously unmentioned membership fees or account protection.”

Consumers say that they were not informed beforehand of these automatic withdrawals, which can cause bank accounts to become overdrawn. In addition to the automatic debits and questionable charges, there is another area of concern.

“Consumers must be very wary of giving personal information to any company over the Internet,” said Bernas. “You do not know who has access to or how an unknown business protects your social security number, driver’s license number, bank account numbers or other information.”

LaTonia, a consumer from Chicago registering a complaint with the BBB, saw unwarranted charges on her account after applying for a loan. “I applied for a loan and soon afterwards the amount of $29.99 was withdrawn from my checking account twice, each time by a different company.” LaTonia said, “When I called to find out what was going on I was told that this was a fee for services to help me with my finances and went along with the loan automatically. I go for a loan because I need money and then I end up in this situation when I did not even agree to these charges.”

Wendy, another consumer, had a similar experience when she took out a loan with My Cash Guardian. “I found a $29.95 charge on my credit card that I had not authorized. The company told me that I had agreed to this when I applied for a loan. They promised me a refund within 10 to 15 days, but it has been over three weeks and I have not seen it,” Wendy recalls, “I have gotten three unauthorized charges on my credit card statement since this one for unrelated things like bike parts. These charges were all under $30.”

The BBB offers the following tips for consumers to protect themselves when doing business on the Internet:

Verify the business’s contact information (name, address, phone numbers) before you give out any personal information.

Read the loan’s terms and conditions carefully. If you don’t understand them, ask. If you are unable to get a suitable response, don’t do business with the company.

Be extremely cautious about providing social security numbers, bank account numbers and other personal information to businesses you do not know and trust.
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Deal with businesses that have proven to be trustworthy and have known business practices. Ask friends and family members and research the business. If a pop-up box appears after purchasing an item, read the box carefully to see how you can close it out without agreeing to a purchase.