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
Humboldt Broncos crash victims and families react to decision to deport truck driver
The family of one of the victims of the Humboldt Broncos bus crash in 2018 says they are 'thankful' for a decision by a Calgary immigration board to deport the driver of the truck involved.
A woman took her dog to a shelter to be euthanized. A year later, the dog is up for adoption again
Exhausted and short on options after consulting two veterinary clinics, Kristie Pereira made the gut-wrenching decision last year to take her desperately ill puppy to a Maryland shelter to be euthanized.
Community mourns victims of fatal boat crash near Kingston, Ont.
The three people killed in last weekend's tragic collision between a speedboat and a fishing boat north of Kingston are being remembered Friday.
Dolphin stuck in N.J. creek dies after 'last resort' rescue attempt, officials say
Animal welfare officials say a dolphin stuck in a New Jersey creek for more than a week has died after a rescue attempt they say was attempted as a “last resort.”
'God forgives but we don’t': Loud outburst from stabbing victim’s family during sentencing hearing
An emotional outburst in a London, Ont. courtroom Friday disrupted the sentencing hearing of a woman who pleaded guilty for her part in the death of a 29-year-old Mohammed Abdallah.
NASA launches tiny CubeSat to set its sights on Earth
NASA has launched the first of two research satellites to measure how much heat is lost to space from the Arctic and Antarctica.
How to keep insects out of your house, according to an entomologist and other experts
Now that temperatures have warmed up even more this spring, you may be anxious at the thought of bugs invading your home or you may already be battling the pests. Here are expert tips on how to keep them away.
‘It’s pretty alarming’: Urban Wildlife encounters in Winnipeg this week
When you consider what kind of animals you might encounter in your Winnipeg neighborhood, a bear probably isn’t on your list.
Prescriptions for weight loss, diabetes drugs for young people leaped 600% since 2020, study says
The number of young people in the U.S. who are prescribed GLP-1 agonist drugs like Wegovy and Ozempic for weight loss and diabetes soared 594.4 per cent in just three years, according to new research.