A woman called the TV station from Covington today. She tried to help her financially-strapped brother but instead she's out $750 bucks.
Here's what happened. Her brother found a company on the web that would give him a $5,000 loan. But they needed collateral. (Red flag #1)
This is a company that is supposed to be a credit repair service. (Red flag #2)
The company website says it is in Irving, California. But it asks the woman to send a $750 money order as collateral for the loan to CANADA . (Red flag #3)
The website looks legitimate. But hey, my teenagers can make a good looking website. Still, here's the unbelievable part. In case you weren't planning to check out the record of the company, it actually has a link to the California BBB. I clicked on the link, where this company is listed as getting an "F" by the BBB! California assigns grades to companies from AAA to F. An F means bad, in case you were wondering,
"We strongly question the company's reliability for reasons such as that they have failed to respond to complaints, their advertising is grossly misleading, they are not in compliance with the law's licensing or registration requirements, their complaints contain especially serious allegations, or the company's industry is known for its fraudulent business practices."
I know the readers of this website and the listeners of Clark Howard would catch the red flags before sending any money. But sometimes we do nutty things for our loved ones, and this woman assumed, incorrectly, that her brother had done his due diligence.
I have a feeling as the economy worsens, we're going to get more phone calls like this. Please please please, if you get into trouble and you can't get out of your mess by yourself, call the Consumer Credit Counseling Service. It's non-profit, it's legit and the people there are amazing. Here's the number: 1-800-251-CCCS (2227).
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