RALEIGH, N.C. (WNCN) — A lending company doing business in North Carolina has been flagged by the Better Business Bureau, which is warning consumers to be wary in dealing with the firm.
The firm is not licensed to do business in the state, CBS North Carolina has discovered.
Cash Loans Funding has a colorful website offering mortgages, personal Loans, bad debt loans, and loan consolidation. The BBB of Eastern North Carolina says many people who’ve dealt with the company have had problems.
“Cash Loan Funding was brought tour attention by more than 60 customers inquiring about them in past three months,’ says Mallory Wojciechowski who is the CEO of the BBB of Eastern North Carolina.
Shawn Kovalcik, of Chicago, was one of their customers. He spoke with us on the phone about his experiences.
RELATED: Email CBS North Carolina’s Steve Sbraccia if you have a consumer issue.
“I was lied to and lied to,” Kovalcik said. “Disclosure was false because they said they’d never ask for money, which they did. They lied over and over and over.”
Cash Loans Funding’s website says their office is located at 208 Fayetteville St. in Raleigh. CBS North Carolina’s Steve Sbraccia went there. It turns out it’s a locked and vacant building.
Their letterhead has an improper address too. It says 208 Fayetteville St., Charlotte.
A check with Google Maps shows there is no Fayetteville Street in Charlotte.
“This company is most likely preying on consumers who are trying to improve their credit,” said Wojciechowski.
If you do business in North Carolina as a corporation, you must register with the secretary of state’s office. There is no listing for Cash Loans Funding.
In addition, banks and lenders are also supposed to be registered with the North Carolina Banking Commission; again, there was no listing for Cash Loans Funding.
That prompted the BBB to issue a consumer alert with an “F” grade for the company.
“Not having proper licensing is reason for the ‘F,’” said Wojciechowski.
A loan contract from the company to one of its customers that was obtained by CBS North Carolina asks for upfront fees in the form of loan insurance.
“They’re asking to be paid by wire transfer or money order which means the money is gone once its sent,’’ said Wojciechowski.
Paying upfront fees is another red flag, says the BBB. The loan industry generally doesn’t charge those items to customers ahead of time, according to the BBB.
“Most legitimate lenders will take the money out of their lending deal,” explained Wojciechowski.