Loan Company Scam emerges with Arkansas Address
September 24, 2008, Little Rock, AR, The Better Business Bureau is warning of a new advance fee loan company claiming to be located in NW Arkansas. For the last 2 weeks, consumers from all parts of the U.S. have been contacting the BBB of Arkansas to check out Capitol Heights Financial Group. All the consumers had been researching loans online and were contacted by the company via email or phone. Regardless of credit history, Capitol Heights guarantees a $5,000 loan no later than one business day from the time the loan agreement and $900 collateral payment are received in their office. Consumers who have returned the agreement and payment have not received the $5,000 loan. When those consumers who returned the loan agreement and collateral payment contact Capitol Heights about the status of the guaranteed loan, the company requires another $900 payment because the initial lender has “backed out of the deal”.
“Anytime someone is ‘guaranteed’ a loan amount but is required to send some form of payment to receive the funds, our suspicions are certainly raised”, said Janet Robb, President/CEO of the Better Business Bureau of Arkansas. “Legitimate loan companies do not guarantee funding before performing a thorough investigation into your financial experience and background – nor do they require advanced payments of funds in order to receive the proceeds of a loan.”
Although Capitol Heights Financial claims to be located one block from Wal-Mart’s headquarters in Bentonville, AR, building management has informed the BBB that Capitol Heights Financial is not a tenant at that address. It is unclear where the company is actually located since the $900 collateral payment is sent to Canada via Money Gram and the address in Bentonville is false. It is common for a Canadian based advance fee loan company to use an address in the United States. Regardless of location, this company is faxing loan agreements, receiving $900 payments, and not providing the guaranteed $5,000 loans they advertise.
About the Better Business Bureau
The Arkansas Better Business Bureau is dedicated to fostering fair and honest relationships between businesses and consumers, instilling consumer confidence and contributing to an ethical business environment, in both the traditional and online marketplaces. The first BBB was founded in 1912, and the network of BBBs and the Council of Better Business Bureaus have grown to become the most recognized advocates for promoting ethical business and advertising practices in the United States.
Consumers are able to determine the reliability of merchants by viewing reliability reports at www.bbb.org.