BBB Warns Of Loan Scam
Monday August 11th, 2014
Posted at 12:00pm
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The Better Business Bureau has issued a warning about Herington Capital Investors.
“These businesses promise consumers, even those that are unqualified, that there is a high probability that their loan will be approved. Especially for consumers with bad credit or no credit history, this can be a very tempting offer,” says Deborah Brady, President of BBB serving Western Ontario. “The scammers then take off with the processing fee for a loan that will never materialize.”
BBB’s investigation into Herington Capital Investors has determined that it is an Advanced Fee Loan Scheme. Information from consumers has determined that this company is offering loans for an advance fee. Consumers allege that they have responded to advertisements on the internet for loans. After paying several hundreds of dollars, consumers allege that they never received the loan promised by the company.
They say that these schemes target individuals who are having trouble obtaining cash or credit. Customers are lured by advertisements promising “guaranteed” loans, regardless of credit history, for advance fees running between $50 and several hundred dollars. However, you must pay the advance fee before obtaining the “loan”.
In Ontario, it is illegal for a company to request an upfront fee prior to obtaining a loan.
If you have been scammed, you are advised to call police, and the Canadian Anti-Fraud Centre at 1-888-495-8501.