Loan Scam - "Lenders" Have Disappeared Loretta Salzano

I'm in a financial situation. I called on a loan add in the paper; they took down my information and they gave me a call the next week. In order for me to get a loan they said that I had to first send $360 in a money gram. I asked questions and, for my reassurance, they sent me a contract through a fax machine. Everything looked legal so I sent the money gram. In total, I sent $1,200 and now they want more for a "boarder tax." I feel it is a gimmick and I asked for my money back. They said it would be 35 business days before they will refund my money. I feel I'm going to be out of that money so I want to go after them. They say in the contract that they have private lenders. After sending all that money, I went to the online website that I had previously logged on to it and its not to be found. Please advise me about this.

-- Anonymous

A. 

I suspect you are out of the cash but have learned a valuable lesson in consideration for your $1,200. I suggest that you contact the Federal Trade Commission and Massachusetts's office of Consumer Affairs.

It seems as if the crooks are long gone, and chances are they never were where they appeared to be. In our experience some of these scams are run from hotel rooms in Vegas and others are across state lines with the perpetrators moving quickly from place to place, so there is little to no chance that you could find these bad guys and recover your money even with the help of these agencies.

Another option would be to contact your local legal aid office, but I fear the result would be the same.

Do not EVER wire money to someone you don't know based on these promises. Other than a small application fee, legitimate lenders do not charge advance fees. They only charge fees once you have the loan and receive your money! Perhaps your suffering will teach someone else this valuable lesson. Next time you need cash, ask people you know and trust if they know of a reputable lender even if it might be embarrassing to do so. Or at least go somewhere where you can walk into an office as those lenders are less likely to be here and then gone. There are plenty of small loan lenders and consumer finance companies. Another place to look for reputable professionals is through the American Financial Services Association ("AFSA").

-- Loretta Salzano