Nebraska Gov’t has alerted consumers to stay away from an advance fee scam apparently running in the area. The website of the Nebraska Department of Banking and Finance (www.ndbf.org) has issued a news release (PDF File) warning consumers against applying for loans in a company calling itself Penbrook Financial Group. The company promises easy loans online to weary consumers through its website www.penbrookfinancial.com.
In its website, it makes a host of claims. It assures loans even if you have a bad credit history. It claims that it will endeavor to help you get a favorable credit rating. On top of it all, the loans will be provided at the lowest interest rates.
However, before being given any loan amount, you are asked to make four monthly payments of an amount corresponding to the loan amount you requested for. The Department quoted an instance where a borrower was asked to submit 4 installments totaling $2460 to get a loan. It issued a reminder that this practice is illegal in Nebraska as in other states.
The company had listed its address as 6910 Pacific Street, Omaha. However, officials were unable to find any trace of the company at the above address. No contact information either is given in their website. In fact, the ‘Contact Us’ tab there asks you to provide your email address and phone number so they can call you.
The government is concerned as the website is still running. It has asked people to stay away from such scams as they can lose more than their money after being involved. Such scams can steal personal information like Social Security Number and Bank Account details, collected as part of the documentation process, and use them to open illicit accounts at banks or other legitimate credit organizations.
The press release also gave away the following tips to stay away from such scams while you are out seeking loans:
• Don’t pay for the promise of a loan. It’s illegal for companies doing business in Nebraska to promise you a loan and ask you to pay for it before they deliver.
• Legitimate lenders never guarantee or say that you will receive a loan before you apply, before they have checked out your credit status, or contacted your references, especially if you have bad credit or no credit record.
• Don’t give your credit card, bank account, or Social Security number over the telephone, by fax, or via the Internet unless you are familiar with the company and know why the information is necessary.
• If you are offered a loan, don’t send money by wire transfer, or send a money order to obtain a loan. Legitimate lenders will not pressure you to wire funds or send money in advance of a loan.
• If you are not absolutely sure who you are dealing with, get the company’s number from the telephone book or from directory assistance, and call it to make sure you know with whom you are dealing. Sometimes scammers pretend to be another legitimate company. Take some time to find out if the company really does exist and whether or not it is valid and reputable.