RALEIGH, N.C. (WNCN) — The Better Business Bureau issued a warning to Raleigh lender Cash Loans Funding Tuesday after receiving inquiries from more than 60 consumers in the past three months.
Reports from the BBB’s Scam Tracker have found that two individuals combined have lost more than $1,100 to the company. Consumers have reported to the bureau that the Cash Loans Funding requires customers to pay an upfront “insurance fee” before getting a loan, a nonstandard practice in the industry.
Cash Loans Funding is neither listed with the North Carolina Secretary of State’s office nor with the state’s Banking Commission, the latter being North Carolina’s regulatory body for state banks and lenders.
Attempts from the BBB to contact Cash Loans Funding by mail and by phone from the information listed on its website were left unanswered, and the owner of the building the company claims to be located in Raleigh was unaware of its existence.
A call to a different toll-free number listed on a contract sent to the BBB by a consumer was answered by a person claiming to be the company’s manager, listing a nonexistent address in Charlotte unlisted on any other documents pertaining to the company.
To avoid loan scams, the Better Business Bureau recommends watching out for upfront fees, avoiding guarantees and unusual payment methods like money orders or gift cards, and researching brokers and companies before making any agreements. More information about the BBB can be found at bbb.org.