It's a scam preying on people desperate for cash. The Upstate Better Business Bureau's Kathy Barrett says dozens and dozens of consumers are falling for bogus advance fee loans that appear to be from legitimate business using fake addresses right here in the Upstate.
Barrett says Kingswood Lending Group was using 75 Beattie Place in Greenville as their business address, but the directory outside of the building does not list that name. The management company for the building, FRI Management, confirmed to News Channel 7 the company is not a tenant.
The BBB said another company, Millennium Research, is using a vacant lot in Greenville as their address.
Barrett said it's not difficult to get these loans online. She said she even applied for a loan online from Kingswood Lending Group to see what would happen.
"I used all fake information, none of the information was real, and I was approved as well. "Just send us the money and you get your $50,000 loan."
News Channel 7 tried to speak with someone at Kingswood Lending Group but only reached voicemails.
So here's the catch: Barrett said the scammers get loan applicants to wire or send money via money order for items like insurance to secure the loan. She said they claim your loan money will be sent once they receive your money.
"Anytime a company is asking you to send money upfront for whatever reason it's a red flag," Barrett said.
So why can't anything be done to stop it?
"Most of these companies are originating out of the country so that means they don't go by our laws and our regulations," Barrett said.
That's why she wants to remind people to never send money to a company you don't really know. To check out a company click here.
"Money is just too tight for people to lose it like this," Barrett said.
If you think you are a victim of an advance fee loan scam you need to report it to the Federal Trade Commission by calling 1-877-FTC-HELP (1-877-382-4357) or click here.
Here's what the FTC says could tip you off to advance-fee loan scams:
-A lender who isn't interested in your credit history...
-Fees not disclosed clearly or prominently.
-A lender who uses a copy-cat name.
-A lender who is not registered in your state. Check with your attorney general's office in your state for more information.
For more information from the FTC click here.
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