PHOENIX — So you’re out of work and need a little money. Or maybe you’re having trouble paying back student loans and looking for a better deal.
There are a lot of loans being offered now at great rates. But beware. Some of the scams are hard to spot unless you know where to look.
Ken Brewer didn’t know his daughter was looking for a loan online until it was too late. Now he’s warning you.
Brewer says his daughter wanted money to find an apartment and pay off her car. She found something online that said “Lending Tree.” That is a legitimate business. So Brewer says her daughter applied and got an acceptance for a $4,500 from Apple Federal Credit Union. It too is a legitimate business.
But it turns out neither of the real businesses were involved. Their names were used to legitimize the scam. Brewer says in order to get the money, his daughter was supposed to pay a $400 upfront fee. And the fee was apparently ok’d by the Arizona Department of Finance according to an email.
Demanding upfront fees before a loan is illegal and a sure sign not to move forward. But right now, with so many people desperate for money, these scams are flourishing.
Looking for a lower student loan rate? The Better Business Bureau found 131 student loan consolidation scams in Arizona and Southern California. Victims were asked to pay an average $300-$400 upfront. But there were no loans and they had no affiliation with the Department of Education.
Brewer’s daughter was asked to pay her upfront fees by…
