BBB warns against cash loan funding scam

RALEIGH, NC (WTVD) — Looking for a loan? Well, you might want to avoid a “local” lending service.

The Better Business Bureau (BBB) ​​serving eastern North Carolina has issued a cash loan funding warning.

On their website, the company claims to be based in Raleigh at 208 Fayetteville St.

Despite this address in Raleigh, there is no indication that the company actually operates from the building.

Tow truck Diane Wilson called the number listed on the company’s website, and although a representative answered, she said it was the wrong number and that they were not associated with loan financing cash.

A BBB representative said more than 60 consumers inquired about the company and two people lost a combined total of more than $1,100 to the company.

The BBB provided ABC11 with this Contract they got from a Cash Loans Funding client.

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The contract has a different phone number and address than the website.

It’s the same address as 208 Fayetteville St., but instead of being in Raleigh, it says Charlotte.

When Wilson called the number listed on the contract, no one ever answered, but the call was disconnected.

According to one of the contracts the consumers provided to the BBB, it states that in order to obtain the loan from Cash Loans Funding, they were required to pay an upfront “insurance fee”, which is not typical in the lending industry.

Cash loan funding is not listed with the North Carolina Secretary of State’s office or with the North Carolina Banking Commission, which regulates state banks and lenders that offer loans to the consumption.

The BBB offers the following tips to help consumers spot loan scams:

  • Upfront Fees: Application fees, appraisals and credit report fees are charged to consumers who obtain a loan. However, a legitimate lender will collect these fees from the money they lend you, while scammers will often try to collect fees up front. Any upfront fees you have to pay before getting your loan should raise red flags.
  • Unusual guarantees and payment methods: Real lenders will check your credit score and other documents before providing a loan amount and interest rate, and won’t ask you to pay fees through money orders or gift cards.
  • Research: Loan companies and loan brokers must register where they do business. Always contact BBB, the North Carolina Office of the Secretary of State, the North Carolina Attorney General’s Office, or the North Carolina Banking Commission to verify the license and registration of a lender or bank. another financial institution.

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