Authorities warn of nationwide loan company scam

A woman says she lost money dealing with a loan company which she later found out was not doing well.

She was desperate and believed the voices on the other end of the phone were legitimate. It all started when she tried to apply for a payday loan.

“I tried to get a loan from the payday loan center, but I couldn’t get one,” said the woman who did not want to be identified.

This woman says that just when she was feeling desperate after being refused the loan, she got a call from a company called Installment Loans, who said she could help. First of all, they needed her to send a payment.

“’You are a first beneficiary, we have to have the payment of the first month up front,’ which was $ 150. I sent this to them per gram of money,” she said.

And it didn’t stop there, requests for additional payments with iTunes cards.

“There was a problem, I had to send an additional $ 242 because there was an IRS tax,” she said. “The next thing they told me was I had to send $ 249 state to state – watch out, I would get all that money back plus the loan, so I sent it.”

She was then ordered to send an additional $ 180 for a processing fee, which she did. He totaled $ 821.50 in about three days.

When the company asked for an additional $ 150, that’s when the bulb lit up.

“I asked for my money. I didn’t want a loan at the time, they told me I had to pay a cancellation fee of $ 145.”

It’s the same thing they told investigators at NBC12 when we called the company. When we asked what would happen to the money she had already sent if she didn’t pay the cancellation fee, company officials said it would go to charity. The representative said the company has rules and regulations.

The victim contacted a number of authorities for assistance, including the Treasurer Inspector General of the Tax Administration. The authorities sent her a letter saying that she had been taken in a national scam from india, and that the company has been under investigation for almost three years.

The letter suggests that she no longer responds to their calls.

“And I’m not a stupid person, and I don’t know where my mind was the day I did this, I don’t know where it was,” she said.

While trying to get a loan, she spent money that would have been used to pay the rent. Now she is worried about her family.

“Not only will I be kicked out, but they will too,” she said.

Unfortunately, experts say that in situations like these, the chances of recovering the lost money are slim to none.

Authorities say a telltale sign of a scam will always be if a business asks you to make payments using iTunes cards or grams of cash. They also remind you to apply the Golden Rule: if something sounds too good to be true, it probably is.

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