BBB Warns Consumers about Hinsdale Financing

Company Posing as Michigan-Based Financial Services Company Offers Fabricated Loans, Collects Advanced Fees from Unsuspecting Consumers
 
 
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Bbb
Better Business Bureau
Loan Scam

Industrys:
Finance
Non-profit

Location:
Southfield - Michigan - US

SOUTHFIELD, Mich. - Aug. 15, 2014 - PRLog -- Better Business Bureau of Eastern Michigan and the Upper Peninsula (http://www.bbb.org/detroit) (BBB) is warning the public about a company, Hinsdale Financing, purporting to be based in Walled Lake, Michigan, that is contacting consumers stating the consumer is eligible for a loan but indicating they need to pay upfront fees before the loan can be processed. Several complainants to the BBB have reported that they have sent fees as requested via wire transfer but have not received the promised loan. In some cases, the caller has contacted the consumer multiple times, requesting more fees for insurance and taxes, before finally ceasing communication with the consumer and failing to provide the loan.

All complainants list the address, 1160 Welch Rd, Walled Lake, MI, as the company’s reported location and one consumer who provided paperwork from Hinsdale Financing, showed this address on their letterhead. BBB has spoken to the landlord of this building who indicates there has never been a company by that name at that address. BBB has also conducted a site visit to confirm this address is fraudulent. BBB also attempted to contact the company by phone; however the number has been disconnected.

Hinsdale Financing (http://www.bbb.org/detroit/business-reviews/advance-fee-b...) now has an “F” rating on the BBB Business Review along with a warning to consumers about this BBB investigation.

Advanced-Fee Loan Scams

Advance-fee loan scams prey on unwary consumers, taking their money for the promise of a loan or credit, and leaving them in a more difficult financial situation. The scam artists often impersonate legitimate lenders to entice consumers into falling for their bogus offer. Callers often indicate a “guarantee” that a loan will be approved, regardless of the applicant’s credit history. But to take advantage of the offer, the consumer has to pay a fee. Then, the scam artist takes your fee and the loan never materializes.

BBB warns consumers to be leery of callers promising loans or grants, especially when advanced fees are requested. In addition, if you've received documents with a company's address on it, you should independently verify that the address is the actual location of that company.  You should also research the company on our website at www.bbb.org/detroit  or call 248.223.9400 before proceeding.

Signs of an Advance-fee Loan Scam:

The lender isn’t interested in your credit history
Fees that aren’t disclosed clearly or prominently
A loan that is offered by phone
A lender who uses a copy-cat name – sounding similar to a known financial institution
The lender is not registered in your state
The lender asks you to wire money, use a MoneyPak card or pay an individual
The lender asks for additional fees once initial fees have been sent

For more information on how to recognize loan fraud, watch BBB’s True Scams: Stories of Fraud & Deceit: https://www.youtube.com/watch?v=jCUvkaT6QAY&feature=y...



About Better Business Bureau Serving Eastern Michigan and the Upper Peninsula

Better Business Bureau Serving Eastern Michigan and the Upper Peninsula is a non-profit organization with the purpose of promoting trust in the marketplace by assisting in the protection of consumers and businesses from fraud and unethical business practices. In addition to its recognized dispute resolution services, BBB maintains business reviews on the customer service history of more than 85,000 local businesses and provides consumer education materials on numerous topics. BBB provides its services free to the public and its service territory stretches across Eastern Michigan from Ann Arbor through Metropolitan Detroit, Lansing, Flint, upward to Alpena, and covers the entire Upper Peninsula of the state.

Media Contact
Lisa Dilg
ldilg@easternmichiganbbb.org
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Source:Better Business Bureau
Email:***@easternmichiganbbb.org Email Verified
Tags:Bbb, Better Business Bureau, Loan Scam
Industry:Finance, Non-profit
Location:Southfield - Michigan - United States
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