BBB Warns of Loan Scams Found in Ads and on Web

The Better Business Bureau system is warning of a proliferation of Web sites and newspaper advertisements that are impersonating legitimate lenders to steal money from consumers.

In a statement released Friday, the BBB said victims across the United States and Canada have reported losing money, sometimes more than $1,000 each, after responding to Web sites and newspaper advertisements that promise loans regardless of previous credit history.

One of the bogus lenders was Prime Mutual Funding in Salt Lake City, which the BBB said uses a FedEx location as its physical address. According to the BBB, the company offers loans to consumers, with an up-front payment for “insurance.” Consumers reported sending $500 to $1,500 and not receiving a loan.

The BBB says you should not do business with lenders that “guarantee” a loan before you apply or do business with Web sites that refuses to provide a street address and a working telephone number.

Legitimate offers of credit do not require an up-front payment of a fee for collateral, processing, insurance, taxes or any other purpose, the BBB said.

(c) 2007 Deseret News (Salt Lake City). Provided by ProQuest Information and Learning. All rights Reserved.