CALGARY – People with poor credit will often try anything to get a loan. However, not all the companies offering them are legitimate.
Randy Sall needs a small business loan but can’t qualify with the bank.
He answered an ad in the paper and talked to a loan officer with a company in Ottawa called Alliance Trust Union.
They sent him an application and he was approved for $40,000.
“They had paperwork to back it up, and they sent us a contract which looked pretty legitimate,” explains Sall. “We signed the contract, we read the contract and it lined out the payments every month.”
However, before could get the loan, Sall had to pay loan insurance and administration fees totalling over $5,000.
Just as the loan was supposed to be transferred, he was told he had to pay another $2,000 in lawyer’s fees – and that’s when he got suspicious.
“I called the Better Business Bureau and they said this business doesn’t exist,” explains Sall.
In fact, the BBB has issued an alert for Alliance Trust Union on their website.
The company is not licenced or registered in Ontario or Alberta, according to Calgary BBB President, Sandra Crozier-McKee.
“It is illegal for someone to ask you for money ahead of time when you’re trying to obtain a loan,” explains Sandra Crozier-McKee. “Except under very specific circumstances.”
The RCMP say loan fee scams are a very common and warn lawyers should be involved if it’s a legal business and fees are required.
“You’re sending your money to a law firm, the law firm sends its money on. You don’t directly transfer something by western union or to a bank account or another western union location for somebody to pick up cash,” says Sgt. Conal Archer.
Randy Sall says he never thought it was a scam.
He realizes he’s lost his money, but wants to warn anyone else to double check any company asking advance fee loans.
For more information visit the Canadian Anti-Fraud Centre’s website.
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