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
Work stoppage possible as WestJet issues lockout notice to maintenance engineers' union
A lockout notice issued by WestJet to a union representing aircraft maintenance engineers could result in a work stoppage next week.
'I just can't believe that it took so long': Body found in wreckage 3 months after deadly fire
A man accused of arson in a January Old Strathcona apartment fire is expected to be charged with manslaughter after a body was discovered in the burned building late last month.
No proof man lied to brother about number of kittens born in litter, B.C. tribunal rules
A man was denied a $5,000 payout from his brother after a B.C. tribunal dismissed his claim disputing how many kittens were born in a litter.
Quebec police hand out hundreds of tickets to Hells Angels and other bikers before 'first run' meeting
Quebec provincial police handed out hundreds of fines to Hells Angels members and other supporting motorcycle clubs who met for their 'first run' in a small town near Sherbrooke, Que.
Auston Matthews skates ahead of Game 7, status unclear with season on the line
Auston Matthews was back on the ice with his teammates Saturday.
Bodies recovered in Mexico likely 2 Australians, 1 American who went missing: officials
Three bodies recovered in an area of Baja California are likely to be those of the two Australians and an American who went missing last weekend during a camping and surfing trip, the state prosecutor’s office said Saturday.
Russia puts Ukrainian President Zelenskyy on its wanted list
Russia has put Ukrainian President Volodymyr Zelenskyy on its wanted list, Russian state media reported Saturday, citing the interior ministry’s database.
Snakes almost on a plane: U.S. TSA discovers a bag with small snakes in passenger's pants
According to an X post by the Transportation Security Administration, officers at the Miami International Airport found the small bag of snakes hidden in a passenger's trousers on April 26 at a checkpoint.
BREAKING London Drugs begins 'gradual reopening' on 7th day after cyberattack
Almost a week after all London Drugs stores across Western Canada abruptly closed amid a cyberattack, they began a "gradual reopening" on Saturday.