November 5, 2008 -
BBB of the Mid-South is warning consumers about an advance fee loan scam operating with a Memphis address. Springdale Financial Group offers personal loans with a catch – the customer must pay an up-front fee in order to receive the loan. However, customers who have paid that fee have received no loan money.
Springdale Financial Group first came to the BBB’s attention as a result of consumer inquiries. To date, the BBB has received more than 200 inquiries and 3 complaints via phone and internet. The company is using an address of 5860 Ridgeway Center Parkway in Memphis.
According to Capital Realty Services LLC, who manages the property, there is no business with that name at that location. “There are several financial services businesses in that building, but none with the name Springdale Financial. None of the tenants in the building have ever heard of Springdale Financial,” said, Don Calcote, General Manager.
One BBB complainant alleges that Springdale Financial Group promised him a $5,000 loan upon receipt of a $900 fee. The consumer wired the requested $900 but the promised loan was not received. When the complainant questioned the company, he was told to send additional funds. So far, he has sent $1800 by MoneyGram wire transfer to an individual in Alberta, Canada, but has not received any loan funds.
Although none of the current complainants are from the Memphis area, BBB of the Mid-South often responds to consumer inquiries about similar types of advanc fee loan scams. BBB offers the following consumer tips on advance fee loans:
- If you are asked to pay money upfront to get a loan (other than certain mortgage loan fees), it’s a scam.
- Be wary of any lender that guarantees you a loan before verifying your income and credit record.
- Ask yourself why, if a local financial institution won’t make you a loan, someone in Canada would.
- Check out any lender with the BBB.
BBB is an unbiased non-profit organization that sets and upholds high standards for fair and honest business behavior. Businesses that earn BBB accreditation contractually agree and adhere to the organization’s high standards of ethical business behavior. BBB provides objective advice, free business BBB Reliability ReportsTM, and educational information on topics affecting marketplace trust. To further promote trust, BBB also offers complaint and dispute resolution support for consumers and businesses when there is difference in viewpoints. The first BBB was founded in 1912. Today, 111 BBBs serve communities across the U.S. and Canada, evaluating and monitoring more than 3 million local and national businesses and charities. Please visit www.bbb.org for more information about BBB.