Bogus lender claims Oak Bay address

Victim reports losing nearly $7,000 in online loan fraud

You should never pay money to get money, Rosalind Scott, president of BBB Vancouver Island reminds residents after being contacted by a victim out $7,000.

“It was pretty significant. If you’re going online to get a loan you already have some debt,” Scott said. “The big red flag here is this $7,000 was for legal fees, administration fees, up-front costs to secure the loan, paperwork. Reputable financial lenders do not charge any of that; costs are built into the loan.”

The consumer claimed to lose nearly $7,000 to fraudsters pretending to offer online loans through a company using the name Business Fund Group. The fake loan company set up a website with an Oak Bay address. Once the fees were paid, the website disappeared and the phone was disconnected, leaving the victim in greater debt.

“This is what we are here for. If they’re not sure, check it out. We have that information and if we don’t have it we will investigate so that we do have it. We can help people not to lose $7,000,” Scott said.

“Most scammers once they’ve got success on a scam, they change information, they move, they shut it down.”

To protect yourself from fraudulent online lenders BBB suggests researching the company first. Make sure it’s a legitimate, reputable online lender.

Be aware that some companies that appear to be online lenders are actually companies acting as “lead generators” who collect personal information to sell.

The BBB suggests before applying for a loan online be sure to see if you can actually find the brick and mortar location.

Be sure to get every detail of the loan agreement in writing and read the fine print. Be suspicious if the company won’t provide a detailed copy of the loan agreement.

Never wire money. Legitimate financial lenders will never ask you to wire money to them for any reason. In fact, very few legitimate businesses will ever ask you to wire money to them.

Scam artists like to use money-wiring services because once the money has been sent it is virtually untraceable.

Use common sense. The reality is that if you are in a financially challenging situation, with significant debt and a poor credit rating, it is very unlikely that you will easily qualify for additional loans from any lender.

Legitimate, reputable financial advisors can help you come up with a long-term plan to repair your credit rating and reduce your debt, without charging you advance fees or additional fees for their services or advice.

“We see online loan scams fairly frequently. Undoubtedly there are many different scammers running this scam,” Scott said.

“They will be popping up somewhere else, they’ve clearly done this before is my guess.”

Visit bbb.org/Vancouver-island for more information or additional consumer and business tips.

 

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Cindy Foggit plays the lead role of Eliza in Passion and Performance’s film production Eliza: An Adaption of a Christmas Carol. (Courtesy of Rachel Paish)
Victoria adult dance studio releases modern adaption of A Christmas Carol

Instead of usual stage performance, dance studio turns to film

Willow, a kitten belonging to a Victoria family, was rescued by firefighters on Thursday after she got stuck in a basement drain pipe. (City of Victoria/Twitter)
Victoria kitten stuck in basement drain pipe rescued by firefighters

Willow the cat on the mend, owner feeling ‘enormous gratitude’

(Black Press Media file photo)
Blue-green algae bloom confirmed in Elk Lake, water-based activities not recommended

Blue-green algae can be lethal to dogs, cause health issues for humans

Victoria police arrested a man Jan. 15 after he rammed his minivan into an occupied police vehicle. (Black Press Media file photo)
Victoria man arrested for ramming minivan into occupied police vehicle

Man caught after fleeing, crashing into cement retaining wall

Mayor Rob Martin and Costa Canna president Phil Floucault cut the ribbon on Colwood’s first cannabis retail store. (Jane Skrypnek/News Staff)
Cowichan Tribes’ Costa Canna cannabis store opens in Colwood

Cowichan Tribes has one-year deal to grow, sell cannabis

Keith the curious kitten is seen on Nov. 4, 2020 at the Chilliwack SPCA. Friday, Jan. 22, 2021 is Answer Your Cat’s Questions Day. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of Jan. 17 to 23

Answer Your Cat’s Questions Day, Pie Day and International Sweatpants Day are all coming up this week

(Phil McLachlan - Capital News)
‘Targeted’ shooting in Coquitlam leaves woman in hospital

The woman suffered non-life threatening injuries in what police believe to be a targeted shooting Saturday morning

JaHyung Lee, “Canada’s oldest senior” at 110 years old, received his first dose of the COVID-19 vaccine on Thursday, Jan. 14, 2021. He lives at Amenida Seniors Community in Newton. (Submitted photo: Amenida Seniors Community)
A unique-looking deer has been visiting a Nanoose Bay property with its mother. (Frieda Van der Ree photo)
A deer with 3 ears? Unique animal routinely visits B.C. property

Experts say interesting look may be result of an injury rather than an odd birth defect

Terry David Mulligan. (Submitted photo)
Podcast: Interview with longtime actor/broadcaster and B.C. resident Terry David Mulligan

Podcast: Talk includes TDM’s RCMP career, radio, TV, wine, Janis Joplin and much more

Chief public health officer Dr. Theresa Tam provides an update on the COVID-19 pandemic in Ottawa on Friday, Jan. 8, 2021. THE CANADIAN PRESS/Sean Kilpatrick
Canada’s top doctor says to avoid non-essential travel as B.C. explores legal options

Premier John Horgan says he is seeking legal advice on whether it can limit interprovincial travel

Seasonal influenza vaccine is administered starting each fall in B.C. and around the world. (Langley Advance Times)
After 30,000 tests, influenza virtually nowhere to be found in B.C.

COVID-19 precautions have eliminated seasonal infection

Lilly and Poppy, two cats owned by Kalmar Cat Hotel ownder Donna Goodenough, both have cerebellAr hypoplasia, a genetic neurological condition that affects their ability to control their muscles and bones. Photo by Alistair Taylor – Campbell River Mirror
VIDEO: Wobbly Cats a riot of flailing legs and paws but bundles of love and joy to their owner

Woman urges others to not fear adopting cats with disabilities

Martin Luther King Jr. addresses the crowd during the march on Washington, D.C., in August of 1963. Courtesy photo
Government reinforces importance of anti-racism act on Black Shirt Day

B.C. Ministers say education “a powerful tool” in the fight for equity and equality

Most Read