Lower Mainland BBB warns of local loan scam
It’s one of the riskiest scams, according to the Better Business Bureau. Companies claiming to offer loans say they require loan insurance up front. But once you pay the insurance cost, the loan never materializes and you’re left in even worse financial straits than before.
The Lower Mainland BBB says it has seen a spate of these loan scams in the last six months, originating from a variety of companies, including Roswatertin Financial Group, Riverbine Financial Group, and Walsick Financial Group Inc.
“They are primarily targeting persons who have some kind of financial struggle or financial difficulty and it would be difficult for them to get loans through your typical financial institutions,” says the BBB’s Karla Laird. “They promise them loans without any kind of severe penalties or no credit check required.”
She adds recent immigrants are particulary vulnerable because, while advance fees for loans are illegal in Canada, they are normal in other countries and may not seem like a red flag.
The supposed loan insurance fees British Columbians have paid – and lost – range from $950 to $3,500, and applicants are hoping to get between $20,000 and $500,000 in loans. But then, the loan doesn’t materialize.
“Then afterwards they’ve had pretty much immense difficulty getting through to the company,” Laird says. “In some instances, they don’t get through or if they do get through to someone, they’re not getting their issues resolved. And ultimately they get fed up and stop contacting the company because they realize it’s a scam, or report to BBB hoping we can assist in the process.”
The companies seem to have fake addresses. One listed 800 Robson Street as its location – that’s Robson Square, and there’s no loan company operating there. The City of Surrey doesn’t have business licenses or records linked to the companies that claim to operate there, and there’s no record of any as legitimate lenders with Consumer Protections BC.
The local reports to the BBB started last November, and have come from victims in Surrey, Richmond, Nanaimo and Kelowna. And losing your money isn’t the only consequence of getting roped in.
“It’s also facilitating identity theft,” Laird says. “They get your full name, all of your contact information; In some cases your banking information and your social insurance number as part of the loan process. But it’s really a scam.”
CTVNews.ca Top Stories
DEVELOPING 122 active wildfires burning across Canada, 32 considered 'out of control'
The 2024 wildfire season has begun, and it's shaping up to follow last year's unprecedented destruction in kind, with thousands of square kilometres already consumed.
B.C. parents sentenced to 15 years for death of 6-year-old boy
A British Columbia Supreme Court judge has sentenced the mother and stepfather of a six-year-old boy who died from blunt-force trauma in 2018 to 15 years in prison.
Veteran TSN sportscaster Darren Dutchyshen has died
Veteran TSN broadcaster Darren 'Dutch' Dutchyshen, one of Canada’s best-known sports journalists, has died. He was 57. His family says 'he passed as he was surrounded by his closest loved ones.'
'More aggressive': Tocchet shifts lineups as Canucks get ready to take on Oilers in Vancouver
As the Canucks prepare to take on the Oilers for Game 5, Vancouver head coach Rick Tocchet is making changes to the team's lineup.
Think twice before sharing 'heartbreaking' social media posts, RCMP warn
Mounties in B.C. are urging people to think twice before sharing "heartbreaking posts" on social media.
Police issue Canada-wide warrant for Regina homicide suspect
Police have issued a Canada-wide warrant for a man wanted in a homicide which occurred in Regina on May 12.
Trudeau calls New Brunswick's Conservative government a 'disgrace' on women's rights
Prime Minister Justin Trudeau assailed New Brunswick's premier and other conservative leaders on Thursday, calling out the provincial government's position on abortion, LGBTQ youth and climate change.
Kevin Spacey receives star support as he fights to get his career back
Kevin Spacey is pushing back on the 'rush to judgment' against him and is being backed by some big names as he seeks to reclaim his acting career.
Speaker cuts ties with Sask. Party, alleges he faced threats, harassment from gov't MLAs
The Speaker of the Saskatchewan Legislature Randy Weekes has severed ties with the Sask. Party after accusing some members of harassment and intimidation tactics, including a situation he claimed saw the Government House Leader bring a hunting rifle to the legislative building.