The Better Business Bureau (BBB) serving Eastern North Carolina has issued a warning about Cash Loans Funding.
On their website, the company claims to be based out of Raleigh at 208 Fayetteville St.
Despite having that Raleigh address, there is no sign the company actually operates out of the building.
Troubleshooter Diane Wilson called the number listed on the company's website, and while a representative did answer, she said it's the wrong number and they were not associated Cash Loans Funding.
A representative with the BBB says more than 60 consumers have inquired about the business, and two people have lost a combined total of more than $1,100 to the company.
The BBB provided ABC11 with this contract that they got from a customer of Cash Loans Funding.
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The contract has a different phone number and address listed than the website.
It's the same street address of 208 Fayetteville St., but instead of being in Raleigh it states Charlotte.
When Wilson called the number listed on the contract, no one ever answered, instead the call was disconnected.
According to one of the contracts consumer provided to the BBB, it states that in order to get the loan from Cash Loans Funding, they were asked to pay an upfront "insurance fee", which is not typical within the loan industry.
Cash Loan Funding is not listed with the North Carolina Secretary of State's Office nor is it listed with the North Carolina Banking Commission, which regulates state banks and lenders that offer consumer loans
The BBB offers the following tips to help consumers spot loan scams:
- Upfront fees: There are application fees, appraisals, and credit report fees charged to consumers who are obtaining a loan. However, a legitimate lender will collect these fees from the money they are lending you, while scammers will often try to collect fees beforehand. Any upfront fee you need to pay before getting your loan should raise a red flag.
- Guarantees and unusual payment methods: Real lenders will check your credit score and other documents before providing a loan amount and interest rate, and will not ask you to pay fees via money orders or gift cards.
- Research: Loan companies and loan brokers must register where they do business. Always contact BBB, the NC Secretary of State's Office, the NC Attorney General's Office or NC Banking Commission to double check a lender or other financial institution's licensure and registration