BBB Warns of Advance Fee Loan Scam
July 27, 2010 Southfield, MI- The Better Business Bureau Serving Eastern Michigan and the Upper Peninsula has received several complaints over the last few days from people across the country inquiring about a company identified as COLTON FINANCIAL, allegedly located in Farmington Hills, Michigan, and doing business online at http://www.coltonfinancial.com. Consumers are informing the BBB that they have been approved for a secured loan of $5,000.00 if they wire a down payment of $806.00 to Ontario, Canada in order to cover the first few months loan payments or opt for insurance coverage at $1,500.00. Consumers complain that they are unable to contact COLTON FINANCIAL after they have wired the money.
The Michigan Office of Financial & Insurance Services has informed the BBB that COLTON FINANCIAL is not an active Michigan corporation and that it does not have a valid license to provide lending and financial services in Michigan. The address provided is that of a resident of Farmington Hills and not a business or home based business.
The website, http://www.coltonfinancial.com, displays an under construction page. The BBB report is being revised to reflect the BBB’s current investigation.
Recent BBB investigations reveal an increase in bogus loan brokers who are impersonating legitimate lenders. They make illegal use of the names, logos and/or addresses of reputable financial institutions or organizations that have no affiliation or connection with the fraudulent operation.
Signs that the “Lender” is a Scammer
- Pressures you to act immediately.
- “Guaranteed” loans, even if you have bad credit, no credit or a bankruptcy.
- Refuses to provide its street address location.
- Demands that you wire or send money before you have a loan offer confirmed in writing.
- Written communications contain typos and grammatical errors.
- When you telephone, no one is ever “in”; your calls are not returned, or the voicemail box is always “full.”
Victims of bogus loan brokers are encouraged to file a complaint with the BBB (www.bbb.org) or 248-223-9400. While the chance of recovering the payment fee is minimal, victims can provide information to help BBBs warn consumers and assist government investigations.
The Better Business Bureau Serving Eastern Michigan is a non-profit organization with the purpose of assisting in the protection of consumers and businesses from fraud and unethical business practices in the local marketplace. In addition to its recognized dispute resolution services, BBB maintains reliability reports on the customer service history of more than 80,000 local businesses and provides consumer education materials on numerous topics. BBB provides its services free to the public and its service territory stretches across Eastern Michigan from Ann Arbor through Metropolitan Detroit, Lansing, Flint, upward to Alpena, and covers the entire Upper Peninsula of the state.