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 Slovakia's populist prime minister shot in assassination attempt, shocking Europe before elections
Slovakia's populist prime minister, Robert Fico, was shot multiple times and gravely wounded Wednesday after a political event in an attempted assassination that shocked the small country and reverberated across Europe.
U.S. intelligence officials wanted to meet with Transport Canada's UFO 'lead'
Canada's transportation department had a UFO 'lead' who tried to 'quell' media interest and planned to meet with U.S. intelligence officials.
'Very expensive lunch': Sask. driver handed a cell phone ticket for using points app in McDonald's drive-thru
A warning from a Saskatoon driver about using your fast-food app while in the drive-thru line — a trip to get some free lunch cost him a lot more than he bargained for.
'The Fly' has become notorious in France after a brazen escape. What's his criminal history?
A prisoner nicknamed “The Fly” has become notorious in France overnight after a daring and bloody escape from a prison convoy in Normandy that left two guards dead.
Ontario's 'Crypto King' Aiden Pleterski arrested
Aiden Pleterski, the self-proclaimed 'crypto king' from Whitby, Ont., has been arrested in Durham Region after allegedly running a Ponzi scheme worth more than $40 million.
Barge hits a bridge in Texas, damaging the structure and causing an oil spill
A barge slammed into a bridge pillar in Galveston, Texas, on Wednesday, spilling oil into surrounding waters and closing the only road to a smaller and separate island that is home to a university, officials said. There were no immediate reports of injuries.
Person responsible for 1996 drugging of 'Titanic' crew likely not a local: Halifax police
Halifax Regional Police believe a non-resident could be responsible for the infamous drugging of numerous crew members of the 'Titanic' movie with a hallucinogenic in 1996.
Latest updates on the biggest wildfires burning in Canada
Thousands of people in Western Canada remain displaced from their homes as wildfires threaten their communities, triggering evacuation orders and alerts.
OPINION If you think you can’t focus for long, you’re right: Sandee LaMotte
Regaining your focus requires you to be mindful of how you are using technology -- a daunting task if you consider the average American spends at least 10 hours a day on screens.