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Beware of scammers offering loans

August 25, 2008

Whenever there are vulnerable people, it seem like there are dishonest people ready to make a quick buck.

In a time when so many people are struggling to pay their bills and keep food on the table, there have, unfortunately, been scammers preying upon people to take their money and offer nothing in return.

On Friday the St. Louis Business Journal ran a story about a company that is promising personal loans to individuals, taking their money and ultimately walking away with it. No loan is ever given, and the person who made the “deposit” on the loan is left in worse financial shape than before.

You can read the entire story here. The company is reportedly using a

St. Louis address, but appears to be “doing business” all over the country.

I really cannot stress how important it is for individuals to do their homework before agreeing to do business with a company, especially before you hand any money over.

This advice goes for any type of credit counseling, debt consolidation, personal loans or anything else that has to do with your finances.

Research the company. Check with the Better Business Bureau, your state attorney general’s office and the Federal Trade Commission.

And keep in mind the old adage, “If something seems too good to be true it probably is.” Go with your gut. If something doesn’t sit right with you, do some more checking.

There are many reputable companies who help people with their debt. Even though you could be in a financial situation where you feel panicked, it’s important to take enough time to make sure you are truly going to get help from a company.

Also, if you have fallen victim to a scam, please report it to the BBB, the FTC and your state attorney general. The only way to stop these companies from taking advantage of more people is to report them.

Written by admin · Filed Under News, Debt 

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