How do I protect myself from a fraudulent leasing company that
requires a pricey fee before the loan payment is made?

---

Request for Question Clarification by serenata-ga on 16 Jan 2004 17:06 PST

Hi vps-ga ~

You might want to give a bit more information, such as whether you
have actually signed a lease, what the "pricey fee" you are referring
to actually is (such as late fee, interest charges or something else),
are you referring to a "loan" payment or a lease payment, etc.

The more specific information you can provide, the better some
researcher can attempt to answer your question.

The way it is worded now is too vague to try to give any kind of answer.

Thank you,
Serenata

---

Clarification of Question by vps-ga on 16 Jan 2004 20:27 PST

I own a gym and a leasing company is lending me the value of my
equipment ($110,000) in the form of a leasing arrangement.  They are
requesting the the first and last month payments and processing fees
($6,000).  They would like me to execute the papers with fee and then
will mail my check.

Since this was done via phone, fax and internet, I'm a little weary of
this arrangement.  How do I find that they are legitimate besides BBB?
 Is it proper and normal procedure to request fee first?  Aren't such
companies supposed to deduct their fees from the principal loan
amount?

---

Request for Question Clarification by darrel-ga on 21 Jan 2004 13:01 PST

I have experience researching these types of businesses. Can you
provide the name and contact information of the business, and I'd be
happy to see what I can find out.

darrel-ga

---

Request for Question Clarification by darrel-ga on 23 Jan 2004 05:57 PST

Many states in the United States have laws against these types of
advance-fee loans. If you can provide the name and contact information
of the business, I can do some research and see if there are any
reports of fraud?
darrel-ga

Vps--

I have carefully researched your question and have your answer.

To conduct this research, I first searched the following terms: "advance-fee loans"

You may view the results of my search online. The link is
://www.google.com/search?hl=en&ie=UTF-8&oe=UTF-8&q=%22advance-fee+loans%22

The National Consumers League warns against paying money up front for loans:
- Don't pay up front
- Don't fall for promises that you'll get a loan regardless of your credit problems
- Be cautious about emails offering to help you get a loann
- Do business with licensed companies
- If you can't get a loan yourself, get a co-signer
- Get all the costs and other details before you decide
- Have proof of what you're promised

You may view these tips online. The link is
http://www.fraud.org/tips/internet/advance.htm

The National Fraud Information Center lists more advice about advance
fee loans. You may read what that group has to say online. The link is
http://www.fraud.org/telemarketing/teletips/advtip.htm

A company called Credit Report Repair warns against advance fee loans.
You may view what this company says online. The link is
http://www.creditreportrepair.net/advance_fee_loan_scam.html

The Florida Attorney General has published a document about protecting
yourself against advance free loans. You may read that document
online. The link is http://myfloridalegal.com/pages.nsf/0/4987dff802f560e485256cc7006b7fc4?OpenDocument

The Federal Trade Commission has fined a company that ripped people
off through advance-fee loans. You may read that news release online.
The link is http://www.ftc.gov/opa/2002/08/tungsten.htm

The Better Business Bureau offers plenty of advice regarding advance
fee loans. The link is http://www.edmontonbbb.org/tips/ct2406.htm

Crime Watch offers more advice about advance fee loans. You may read
what they have to say online. The link is
http://www.consumersgroup.com/crimewatch/advance_fee_loans.htm

Plenty of other warnings have been issued about companies requiring
advance fees in order to obtain loans. Another good link is
http://toledobuzz.com/zbbn00189.htm

This should answer your questions regarding advance fee loans. If you
do find the name and contact information of the company, I'd be happy
to look up information about that particular company.

I hope this helps. If you need further information or need
clarification to your question, please don't hesitate to click the
"clarify" button.

Thanks,

darrel-ga

The arrangement itself does not sound or appear to be fradulent, but
why have you not at least met with 1 or more of the company officials
in person--do you live a great distance from the city where the
company does business?

Check with your state's Secretary of State's website to make sure the
company is officially registered to do business in the state.  Check
the county court records of the city where they do business to find
out if anyone has filed lawsuits against them.

You should require from them the names and home addresses and phone
numbers and birthdates of at least 3 of the company officials (along
with a copy of their drivers license for identification) so you can
verify the truthfulness or reliability in providing information. 
Consider getting a business credit report for the leasing company from
Dun and Bradstreet.  Can the leasing company give you the names of at
least 2 other people as references who have a similar leasing
arrangement as you do?

If anything looks suspicious or does not check out then it's better to
be able to cancel the contract now instead of paying the check and
then having to go to court later to get it back in case they don't
operate properly.

SINCERELY,
KEITH (I'm NOT a GOOGLE Researcher)