October 21, 2011 Southfield, MI- The Better Business Bureau Serving Eastern Michigan and the Upper Peninsula has received several complaints over the last few weeks from people across the country inquiring about a company identified as UNITED COMMERCIAL CREDIT, allegedly located on E. Fort Street in Detroit, Michigan. Consumers are informing the BBB that they have been approved for a secured loan but are required to wire a collateral deposit of $700 - $1000.00 to cover insurance on their loan.
Consumers are promised they will receive their loan in 24–48 hours or refunded their deposit. To date, no one has received the promised refund. Two of the complainants who did not receive their loan were told that funds could not be released due to their credit history unless they paid an additional insurance premium at which time the funds would be released. One victim faced this excuse on several occasions and wired the scammers over $6,000.00 but still has not received a loan.
The Michigan Office of Financial & Insurance Regulation has informed the BBB that UNITED COMMERCIAL CREDIT is not an active Michigan corporation and that it does not have a valid license to provide lending and financial services in Michigan. The BBB report is being revised to reflect the BBB’s current investigation.
The BBB reminds consumers that advance fee loans are illegal and advises against wiring money to anyone you don't know. Consumers should also be leery of any websites or emails they receive which claim to guarantee loans regardless of credit. Remember, anytime you're asked to pay money upfront to qualify for a loan, the offer is fraudulent.
Signs of an advanced fee loan scam:
- You are guaranteed a loan even if you have no credit, bad credit or a bankruptcy.
- You are guaranteed a loan even if local legitimate lending institutions have refused you.
- Upfront fees are not disclosed.
- You are asked to wire money to the company to pay an upfront fee for insurance, administration or legal fees.
- The company pressures you to send the money right away.
- 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 and the Michigan Attorney General’s Office at (877) 765-8388. While the chance of recovering the payment fee is minimal, victims can provide information to help BBBs warn consumers and assist government investigations.
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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.