BBB Warns Consumers About Loan Scam

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) July 8, 2009 -- FOR IMMEDIATE RELEASE


Media Contacts:
Cindy Stranad
919.232.5008
cindy@articulon.com

Beverly Baskin
919.277.4202
bbaskin@raleigh.bbb.org

BBB Warns Consumers About Loan Scam
Company Using a Vacant Winston-Salem Address

RALEIGH, N.C. (July 7, 2009)—Better Business Bureau of Eastern North Carolina (www.bbb.org) is warning consumers about an advance-fee loan company that is targeting individuals, via the internet, who have poor credit history and difficulty obtaining traditional loans.

Consumers are reporting that Bloomfield Lending Group is using a vacant Winston-Salem, N.C. address and claiming to have been in business for 10 years. According to the property manager at the address being used, the space has been empty for several years. Bloomfield provides telephone numbers that are not local, and no information on the company's location can be found at its Web site, www.bloomfieldlending.com. Bloomfield claims to be licensed in the state of North Carolina, but BBB has found no such record with the N.C. Banking Commission.

"The false promise of hope being offered by this illicit company can be appealing to people when they find themselves with financial hardship," says Beverly Baskin, president and CEO of the Better Business Bureau of Eastern North Carolina. "It is more difficult than ever for families to be approved for various loans, and consumers have to know how to protect themselves against those looking to exploit this situation."

According to the company's loan contract, several monthly payments are required in advance, as "collateral" on the loan. Collecting money up-front, or advance fees, as a condition of credit approval is prohibited by the North Carolina General Statutes.

BBB of Eastern North Carolina advices consumers to use the following three warning signs to help identify possible advance-fee loan scams:
• Pressure to act immediately—scammers will try to get consumers to send money or give personal information out before providing detailed paperwork on the loan. Insist on receiving the proper paperwork before deciding to apply for credit.

• Non-interest in a consumer's credit history—lenders that do not care about your credit record. Ads that downplay bad credit, promise fast money or guarantee approval are often a sign of a scam.
• Loans offered by phone—the Federal Trade Commission states that it is illegal for companies doing business in the U.S. by phone to promise a loan or ask an individual to pay for the loan before delivery.
Additional information on this and other scams is available at www.bbb.org.

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advance-fee loan     BBB of Eastern North Carolina     Beverly baskin     Bloomfield Lending Group     TJX