BBB warns consumers about bogus loan sites
The local chapter of the Better Business Bureau sent out a notice Thuesday warning readers to look out for Web sites impersonating lenders to steal cash from consumers.
"People with the poorest finances are being victimized," Pauline Morrison, president and chief executive of the Better Business Bureau of Central North Carolina, said in the news release.
Victims used Internet search engines to find lenders offering low-interest loans for people with poor credit. They submitted an online application for a loan and then were told they were approved by someone posing as a company representative. The lender asked victims to send an advance fee - via wire or money order to, in most cases, a location in Canada, the BBB says.
Of course, the victim is out the cash, open to theft of personal information submitted in the loan application, and without the loan.
Names to look out for include:
* Intrest (sic) Plus Financial
* Statewide Capital Group
* Lloyds Financial Group
* Home Guard Funding Ltd. or Principal Investments in Illinois
* City Financial Corp. or PeachState Financial Services (Which actually claimed it was located at an address that belongs to the BBB in Central Georgia. Oops.)
Here are some BBB tips for avoiding sketchy Web sites:
* Don't search online using terms like "bad credit loans" or "guaranteed loans."
* Don't wire money or send a money order for a personal loan. Remember that legitimate offers won't include an up-front fee.
* Don't buy into a lender who offers you a "guaranteed" loan before you even apply.
* Get a street address and a working phone number for the lender. If they won't give it to you, don't do business with them.
* Check out the lender's Web site using the BBB. If the Web site has a BBB seal, click on it and read the bureau's report.
* If you're scammed, file a complaint with the BBB. You won't get your money back, but you can prevent other people from being victimized.